The Egyptian Propylene and Polypropylene Company is exploring various means of raising up to USD 450 million to invest in expanding the capacity of its propylene and polypropylene complex at Port Said by 25% from 400,000 tonnes per annum to 510,000 tonnes within two years.

Mr Mohamed Farid Khamis chairman of EPPC said that "We will invite new investors to subscribe to the company's shares to raise the paid up capital in order to fund the expansion. We may issue new shares to expand the shareholder base or issue rights shares to existing shareholders."

EPPC is considering floating some shares on the stock exchange to fund future projects but we are still concerned about the Egyptian market's stability. The company's Port Said complex includes two plants for propylene and polypropylene. As much as 65% of the production is exported to European markets and 35% is sold in the Egyptian market.

Mr Yasser Ismail former director of the Egyptian Petrochemicals Holding Company said that "The expansion will put Egypt on the regional map of petrochemicals producers which is currently dominated by Saudi Arabia, Qatar and Iran."

Source - Zawya

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