The Sanmar group, TCI Sanmar Chemicals SAE, which has established a huge chemicals complex in Port Said in Egypt, plans to invest an additional $150 million in phase two of the project.
This will involve setting up a new PVC plant with a capacity of two lakh tonnes and will also enhance its ethylene manufacturing capacity by 60,000 tonnes. After this round, the total investment will be $1.3 billion, says a press release from the company.
Sanmar acquired Trust Chemicals Industries in March 2007 and renamed it TCI Sanmar Chemicals.
In the first phase, its plan was to manufacture 2.75 lakh tonnes caustic soda, 60,000 tonnes of green ethylene from ethanol and two lakh tonnes PVC in a year.
TCI Sanmar employs about 2,000 Egyptians directly and indirectly.
“The caustic soda plant is operating at around 90 per cent capacity while the PVC plant is operating at around 60 per cent capacity and will reach 100 per cent by March 2015 when a new drier is commissioned.
Phase II expansion work involving setting up another PVC plant of two lakh tonnes capacity and enhancing the ethanol to ethylene capacity to 1.2 lakh tonnes will involve an investment of $150 million. We will start implementation of Phase II after achieving financial closure which we are working on,” said PS Jayaraman, Chairman of TCI Sanmar.
Recently, Prime Minister Ibrahim Mehleb visited the plant, along with Navdeep Suri the Indian Ambassador to Egypt, and praised the scale of the Indian manufacturing facilities in Egypt, said the company.
Mahlab toured the premises and received a briefing on the nature of the project, its contribution to the Egyptian economy and challenges to its growth
Sanmar’s is the largest Indian investment in the country.
Indian investments in Egypt amount to more than $2.5 billion across 50 different companies.