Dubai's Al Khaleej in $1 bln Egypt beet sugar mill deal

Dubai’s Al Khaleej Sugar Refinery has agreed to build a major agro-industrial complex to produce beet sugar under a deal signed with the Egyptian government, the world’s largest port-based sugar refinery said on Sunday.
The project, named Al Canal Sugar, will be located only about 200 km (125 miles) from its market, Jamal al-Ghurair, managing director of the refinery, told an industry conference in Dubai.

Investment Minister Sahar Nasr said the project, with a cost of around $1 billion, would produce 900,000 tonnes of sugar annually, filling a supply gap in the market and making Egypt self-sufficient in sugar.

Ghurair said the global sugar market was oversupplied and that sugar margins had to improve by moving production closer to markets.

The key financial partner for Al Canal Sugar, located in Minya, is Al Ahly Capital Holding, the project’s chief executive, Islam Salem, told the conference. Al Ahly is the private equity arm of the National Bank of Egypt.

“The mill is expected to start production in mid-2020 with full capacity reached in February 2021,” Salem said.