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IFC is providing up to $35mn in loans toward the construction of a new chemical factory near Egypt’s Red Sea coast, an Indian-Egyptian joint venture that will employ hundreds of people, spur the local economy and help develop cross-border trade
Egyptian Indian Polyester Company S.A.E., a joint venture between India’s Dhunseri Petrochem & Tea Limited, and two Egyptian government agencies, will build the plant near the town of Ain Sokhna.
The factory will produce 420,000 tonnes of polyethylene terephthalate (PET) per year, a chemical used in the manufacture of lightweight plastic bottles for water and soft drinks. The factory is expected to employ 800 people during construction and 500 people full time when operational.
The project is also being financed through a $65.5mn loan and an $11.3mn working capital facility provided jointly by Commercial International Bank and Ahli United Bank.
“We are excited to embark on the development of our first PET factory outside of India and are pleased to have IFC alongside as an investor, along with Egyptian Banks CIB and AUB,” says Mrigank Dhanuka, Vice Chairman and Executive Director of Dhunseri Petrochem & Tea Limited.
“Egypt is an advantageous choice for our investment, as the plant’s location in Ain Sokhna will allow us excellent logistical access to the European and North American markets, besides meeting internal demand in the country. This will be a state-of-the-art project in this region, which will give direct and indirect employment to more than 500 people and earn foreign exchange for the country.”