Sidi Kerir Petrochemicals Company (Sidpec) and UOP International have signed a contract for establishing a new propylene factory at Sidpec, Egypt Oil & Gas reports.

The contracts were signed in attendance of Egyptian petroleum minister, Tarek El Molla, and Saad Helal, head of the Egyptian Petrochemicals Holding Company (ECHEM).

In addition, Sidpec will sign a contract with Grace International Company to construct a polypropylene factory.

The new factories will start production in 2022, Egypt Oil & Gas previously reported.

When fully operational, the factories annual capacities will reach 500,000 tons of propylene and 450,000 tons of polypropylene.

Around $1.2 billion has been invested in the construction of the factories.