Indian TCI Sanmar plans on establishing USD150-m ethylene station in Egypt
Date
8/12/2024 6:49:46 AM
(MENAFN) Indian chemical manufacturing giant TCI Sanmar Chemicals is set to invest USD300 million in Egypt, aiming to enhance its operations and expand its footprint in the region. The investment includes USD150 million for the construction of a new ethylene receiving and transport station at West Port Said, with an additional USD150 million earmarked for expanding its existing facilities in Port Said dedicated to the production of Vinyl Chloride Monomer (VCM) and Polyvinyl Chloride (PVC).
The announcement was made by Egypt's Ministry of Trade and Industry, which highlighted the strategic importance of this investment in boosting the country’s chemical sector. This expansion is seen as part of Egypt’s broader strategy to enhance private sector involvement in strengthening local industry. The government's plan, driven by President Abdel Fattah al-Sisi’s directives, focuses on closing market gaps, localizing industries, reducing imports, and increasing exports.
Jayaraman, chairman of TCI Sanmar, emphasized the company's commitment to the Egyptian market, noting its strategic importance as a gateway to both Middle Eastern and global markets. The company, which currently exports 70% of its production while serving 30% of the local market, plans to adjust its production strategy to cater more extensively to local demand, thereby reducing import reliance and conserving foreign currency.
TCI Sanmar’s investment, which totals USD1.5 billion, underscores its significant role in the Middle East and North Africa’s chemical sector, particularly in PVC production. The company’s operations in Egypt support approximately 3,000 jobs, contributing significantly to the region’s economic development.
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