Egyptian consortium to set up a USD 1.2 bn chemical production plant o feed fertilizer industry

A mega phosphoric acid plant in the works set to give the local fertilizer industry a boost: A local consortium led by Abu Tartour For Phosphoric Acid will set up a USD 1.2 bn phosphoric acid production plant, an unnamed government official told Al Arabiya. The project will be carried out over a 36-month period and aims to produce 900k tons of phosphoric acid a year.

Phosphoric acid? Although it has numerous uses — including changing the taste of carbonated soft drinks, preserving foods, treating rust, adjusting pH levels for cosmetics and more — by quantity and especially in Egypt, phosphoric acid is mostly used in the manufacture of fertilizer. The vast majority — if not all — of the phosphoric acid produced by the plant will presumably end up being consumed by the fertilizer industry, considering who’s involved in the project.

Who’s involved? Nine local players will take on the project, including Abu Tartour, Enppi, Petrojet, Chemical Industries Holding Company, Abu Qir Fertilizers, Phosphate Misr, and East Gas Company. Abu Tartour — which runs the largest phosphate mine in Egypt and one of the largest in the world — will operate the facility once it's up and running.

Who’s paying? The consortium is looking into its financing options — finding a new investor to take over financing the project in return for a percentage of the project or turning to lenders for 65% of the funds needs and self funding the remaining 35%.