The Egyptian Ethylene and Derivatives Company (Ethydco) launched its butadiene factory with a capacity 20,000 tons per year. The facility is the first of its kind in Africa, reported Al Borsa.

The Egyptian Petrochemicals Holding Company’s (ECHEM) CEO, Mohamed Saafan, stated that butadiene is an essential component for many industries like poly-butadiene, styrene-butadiene rubber, and acrylonitrile butadiene styrene. Furthermore, the project will have a positive impact on the country’s foreign reserves, since Egypt will export the produced Butadiene.

Saafan added that the company is currently considering the production of Styrene-butadiene rubber through facilities provided by state-owned firms like the Egyptian Styrene & Polystyrene Production Company (Estrenics) as a part of the oil and gas sector compatibility strategy.

Egypt Oil&Gas reported earlier that Egyptian President Abdel Fattah El Sisi had launched the petrochemicals complex of Egyptian Ethylene and Derivatives Company (Ethydco) in Alexandria in mid August with a total investment of $1.9b. The complex is set to operate with the capacity of 460,000 tons of ethylene, 400,000 tons of poly-ethylene, and 20,000 tons of butadiene.