GE and Carbon Holdings Sign Technology Cooperation Agreement Worth US$500 Million for Egypt's Largest Petrochemical Plant
Part of the US$4.8 billion Tahrir Petrochemicals Complex, the project is billed as the world's largest naphtha liquid cracker and will feature advanced GE technologies
Technology and equity agreement support Egypt's all-round growth and strengthens economic competitiveness
Cairo, Egypt — GE (NYSE: GE) and Carbon Holdings today signed a US$500 million agreement to provide technology and equity support to the greenfield naphtha cracker and olefins complex project of Tahrir Petrochemicals in Ain Sokhna, Egypt.
As part of the partnership, GE, with proven strong competencies in energy, oil gas, power, water, aviation, transportation and healthcare among others, will provide equity financing and advanced technologies to the new petrochemicals complex. This is part of an integrated package of solutions to meet the needs of the country. The technologies to be provided for the new plant include advanced aero-derivatives gas turbines, steam turbines, generators, water filtration and desalination equipment, turbo machinery compressors and industrial solutions services.
At a ceremony held at the Egyptian Ministry of Industry & Foreign Trade, John Rice, GE's Vice Chairman, signed the agreement with Basil El-Baz, Chairman and Chief Executive Officer of Carbon Holdings.
His Excellency, Mounir Fakhry Abdel-Nour, Minister of Industry & Foreign Trade, said: "Egypt is focused on providing a strong and business-friendly environment for investors. In addition to facilitating easy procedures that promote industrial investment, we are also committed to bring advanced technological partnerships that can benefit our youth and all-round economic growth. The visit of GE's senior executive to the country and the company's partnership on the largest industrial project of its kind in Egypt highlights growing investor confidence. The project will be a strong value addition to our economy."
John Rice said: "GE is committed to strengthen our presence and partnerships in Egypt, where we have had a presence of over four decades. We are proud to support key customers with technology and capital that can accelerate productivity and address the increasing demand for infrastructure and industrial development. GE's advanced technologies will be an ideal fit for the project, which will create new jobs for Egyptian youth and boost the manufacturing and exports sector of the country."
Basil El-Baz said: "Tahrir Petrochemicals Complex marks our vision to further strengthen the petrochemical sector of the country, and strengthen foreign direct investments. Developed through global partnerships, the new plant will contribute to the socio-economic growth of Egypt, bringing the newest technologies for greater energy sector efficiencies and creating new jobs. During the construction phase, the project will employ over 20,000 professionals and skilled workers in addition to creating several thousands more indirect jobs. It will also add another 3000 high-skilled jobs once operational for engineers and technicians. Set to generate annual revenue of US$6 billion, once completed the project will strengthen the country's overall annual exports by over 25 per cent."
The new plant has the potential to drive overall growth of the Egyptian economy with its products having a strong impact on the construction and manufacturing sectors – two key contributors to the national economy. In addition to direct jobs at the plant, the local availability of the plant's products will also contribute to energizing ancillary industries, thus creating thousands of indirect jobs. With a capacity of 1,360,000 tons per annum of ethylene and polyethylene, as well as significant quantities of propylene, benzene, butadiene and linear alpha olefins, the plant is billed as the world's largest naphtha liquid cracker.
Featuring a power, water desalination and water treatment plant, the complex will employ a combined cycle power plant to generate 300 MW of power. The full-fledged water desalination plant, featuring GE's proprietary ultrafiltration and reverse osmosis technology, has a generation capacity of 3,800 cubic meters per hour.
With an office in Cairo, GE has over 400 employees in Egypt. GE's advanced gas turbines help generate more than 7 gigawatts of electricity, nearly 30 per cent of the country's total installed capacity. Through its projects, GE provides advanced power generation technology and services including maintenance and operations, parts and repair services, and contractual services agreements for partners including Egyptian Liquefied Natural Gas.
Carbon Holdings is an industrial developer and operator implementing downstream oil and gas projects in Egypt. In addition to the Naphtha Cracker and Olefins Complex project, Carbon Holdings projects also include a greenfield Mining Grade Ammonium Nitrate project that is currently under construction and a greenfield refinery project.
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