The Egyptian Petrochemicals Holding Company (ECHEM) has unveiled a five-year plan to launch 10 projects targeting the localization of over 20 petrochemical products for domestic and international markets. The plan envisions a total production capacity of 7.5 million tons (mmt) and investments estimated at $11 billion, according to Chairman Alaa El-Din Abdelfattah.

Speaking at the company’s general assembly to approve its investment program for fiscal year (FY) 2026/2027, Abdelfattah highlighted ECHEM’s efforts to deepen integration with the Ministry of Industry, aiming to substitute high-import petrochemical inputs with locally manufactured products.

He reviewed the executive steps planned to advance several projects, including soda ash and silicon derivatives projects in New Alamein, the methanol derivatives project in Damietta, and an Alexandria supply chains project to provide ethane feedstock and gas derivatives for future petrochemical projects.

ECHEM has reached a total production of about 4.2 mmt in 2025, with exports to more than 50 countries, said Abddelfattah, noting that availability of natural gas supplies has helped drive production at existing petrochemical projects to meet the needs of the local market and exports.

During the meeting, Karim Badawi, Minister of Petroleum and Mineral Resources, stressed the importance of directing the petrochemical sector’s efforts toward studying priority needs in the local market while also maximizing opportunities in global markets in a way that supports the localization of new industries, provides feedstock for existing industries, reduces the import bill, increases export revenues, and creates new job opportunities.

Badawi also emphasized the need to adhere to accelerated timelines for implementing key projects, including the Red Sea Petrochemicals Complex, planned for the Ain Sokhna economic zone. He described the complex as a major project with significant production capacity and highlighted its expected contribution to the Egyptian economy.

In April, an Egyptian-Chinese joint venture (JV) was formed to execute the preliminary designs for the complex. The project involved securing a 5-million-square-meter site, establishing basic infrastructure, and signing crude supply agreements with the Egyptian General Petroleum Company (EGPC) and Saudi Aramco. Logistics agreements were also signed with the Arab Petroleum Pipelines Company (SUMED) and Sonker Bunkering Company (Sonker) for product handling, as well as local and international distribution agreements.

Abdelfattah also highlighted efforts to maximize the benefits of existing projects, including the Wood Technology Company (WOTECH), as well as development and expansion projects at companies such as Egyptian Linear Alkyl Benzene Company (ELAB), Misr Fertilizers Production Company (MOPCO), and Sidi Kerir Petrochemicals Company (Sidpec).

He also noted that the Egyptian Petrochemicals Company in Alexandria recently produced medical-grade polyvinyl chloride (PVC) for the first time.

Established in January 2002, ECHEM is one of the holding companies under the Egyptian Ministry of Petroleum, tasked with developing and managing Egypt’s petrochemical industry.