The petrochemical plant, which is estimated to cost more than $5bn, is being developed by the firm to boost production of ingredients used in plastics, tires and automotive parts and food packaging, among others.
Carbon Holdings CEO Basil El Baz said: "We look forward to partnering with IFC and tapping the potential for Egypt’s chemicals sector to grow and make a meaningful contribution to job creation and tax revenues in a country where unemployment is very high."
The investment is part of World Bank Group and IFC strategy to promote private investment while helping to increase the country’s competiveness.
IFC Middle East and North Africa director Mouayed Makhlouf said: "This investment will support the development of a range of manufacturing industries that rely on chemical inputs that would otherwise have to be imported.
"This is in line with our strategy to support local entrepreneurs and increase their access to capital, boosting investors’ confidence and spurring much needed growth in Egypt."
Planned to be built in Egypt’s Suez Special Economic Development Zone, the Tahrir petrochemicals plant is expected to create 20,000 construction jobs and is designed to serve both local and export markets.
The project is expected to receive financing from the export credit agencies of the US, Korea, Italy and the Overseas Private Investment Corporation, as well as direct investors.
Featuring four million tons per annum naphtha cracker plant and related downstream facilities, the petrochemical complex will have capacity to produce 1.4 million tons per annum of ethylene and polyethylene, 900,000tpa of propylene, 250,000tpa of butadiene, 350,000tpa of benzene and 100,000tpa of hexene-1.
Image: Egypt’s Carbon Holdings intends to boost production of ingredients used in plastics, tires and automotive parts, among others. Photo: courtesy of blackzheep/ FreeDigitalPhotos.net.
