In an effort to increase USD influx, Sidi Keriri Petrochemicals Company (Sidpec) intends to export 70% of its polyethylene that is produced at its new Ethydco facility, in cooperation with the Egyptian Natural Gas Company (GASCO) and the Egyptian Petrochemicals Holding Company (ECHEM), Al Borsa reported.
Sidpec will use these USD cash inflows to payoff loans used in the construction of the Ethydco plant. Furthermore, the company is targeting a January date for the commercial start of operations at the facility. The company is currently going through a trail run for the production of polyethylene and other byproducts that have been deployed to local markets for feedback.
In 2010, Sidpec signed a $1.9b agreement with GASCO and ECHEM on the development of the polyethylene manufacturing facility, with 65% of investments coming from loans. Under the terms of the deal, Sidpec owns 20% of the Ethydco plant that has an annual production capacity of 640,000 tons of ethylene, 400,000 tons of polyethylene, and 20,000 tons of butadiene.