IFC, a member of the World Bank Group, is providing up to $35 million in loans toward 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 an
IFC, a member of the World Bank Group, is
providing up to $35 million in loans toward 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
tons 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 $65.5 million loan and an $11.3
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.?
The project represents a further step in the Egyptian government?s strategy of
increasing local value addition to the country?s oil and gas reserves, will
stimulate job creation in related industries, and is expected to help grow
Egypt?s foreign exchange reserves.
?IFC?s involvement in this project demonstrates our commitment to stimulating
cross-border investments as way to help developing economies overcome short term
challenges,? says Takuro Kimura, IFC Manager for Manufacturing, Agribusinesses
and Services in the Middle East and North Africa. ?Additionally, the hundreds of
jobs this new PET plant will create show the private sector?s important role
generating employment.?
IFC is committed to fostering economic development in the Middle East and North
Africa through an integrated investment and advisory services program,
underpinned by the conviction that the private sector plays a key role in
reducing poverty and creating jobs, particularly for the region?s large
population of unemployed youth.
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