Summary of Proposed Investment
Project Number
25466
Company Name
SOUTH ASIAN PETROCHEM LIMITED
Date SPI Disclosed
Oct 5, 2007
Country
Egypt, Arab Republic of
Industry
Manufacturing
Projected Board Date
Nov 12, 2007
Status
Active
Sector
Plastics Material and Resin
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Dec 10, 2007
Signed : Jul 17, 2008
Invested : Jul 17, 2008
Project Description
South Asian Petrochem Limited (SAPL or the sponsor), India’s second largest manufacturer of Polyethylene Terephthalate (PET), is planning to set up a joint venture with the Egyptian Petrochemical Holding Company (Echem), an agency of the Government of Egypt (GoE), to establish a 315,000 tons per annum (tpa) greenfield PET resin plant in Damietta, on Egypt’s Mediterranean coast. SAPL will have a 70% share in Egyptian Indian Polyester Co. (EIPET or the project company) whereas Echem will hold 23% and Engineering for the Petroleum & Process Industries (Enppi) will hold the balance 7%. The project has an estimated cost of approximately $135 million (including working capital requirements).
PET, which is produced from mono ethylene glycol (MEG) and terephthalic acid (PTA), is sold in small pellets and its major use is for the manufacture of lightweight plastic bottles for carbonated soft drinks and water. The project’s output is expected to be exported to Europe and the United States and also sold in Egypt, Middle East and North Africa.
The project will be the first PET plant in North Africa. Egypt has significant advantages for the location of a PET plant including:
- low logistics costs for sales to the European Union (EU) and North American markets;
- access to the fast growing and underserved African and Middle Eastern markets;
- excellent port/infrastructure facilities;
- favorable trade agreements with the EU; and
- proximity to sources of MEG feedstock.
PET, which is produced from mono ethylene glycol (MEG) and terephthalic acid (PTA), is sold in small pellets and its major use is for the manufacture of lightweight plastic bottles for carbonated soft drinks and water. The project’s output is expected to be exported to Europe and the United States and also sold in Egypt, Middle East and North Africa.
The project will be the first PET plant in North Africa. Egypt has significant advantages for the location of a PET plant including:
- low logistics costs for sales to the European Union (EU) and North American markets;
- access to the fast growing and underserved African and Middle Eastern markets;
- excellent port/infrastructure facilities;
- favorable trade agreements with the EU; and
- proximity to sources of MEG feedstock.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Sr.Vice President (Finance) & C.F.O.
South Asian Petrochem Limited
Dhunseri House,
4A, Woodburn Park,
Kolkata 700020
India
Telephone: +91-33-2280 1957 (Direct); +91-33-2283-6130-33 (Ext.106)
Fax:+91-33-2283 4216/ 22801956
South Asian Petrochem Limited
Dhunseri House,
4A, Woodburn Park,
Kolkata 700020
India
Telephone: +91-33-2280 1957 (Direct); +91-33-2283-6130-33 (Ext.106)
Fax:+91-33-2283 4216/ 22801956
For Inquiries and Comments About IFC, Contact
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster
Local Access of Project Documentation
ESRS (Environmental and Social Review Summary) and the summary of the same is available on the website of IFC and will also be available on the SAPL website and at the following location locally:
Damietta Moubarak Public Library
El Asser
Kornish el Nil
Damietta
Egypt