(Cairo, Egypt) – Carbon Holdings, a mid-to-downstream petrochemicals company and catalyst of industrial development in Egypt, announced today its participation in the 2018 UK Energy Industries Council (EIC) Connect Oil & Gas Conference held in Manchester, UK on November 27th and 28th. The conference provided a distinct platform for UK businesses to gain further insight on capital project requirements as well as operations and maintenance opportunities around the world.
With the UK topping the list of FDI inflows to Egypt — at around 41% in 2017 with investments amounting to US$20 billion —and given the oil and gas sector receives nearly 50% of these investment inflows, the conference provided an ideal setting for UK businesses to access and align with capital project requirements as well as operations and maintenance opportunities around the world.
The conference featured a high-level panel discussion centered on the opportunities arising within Egypt’s oil and gas sector. During the panel, Carbon Holdings Chief Projects Officer Peter Skelley ran down the opportunities and risks of doing business in Egypt while showcasing Carbon Holdings and its flagship Tahrir Petrochemicals Corporation (TPC) as a key pillar in promoting job creation, supporting industry development, and propping up the Egyptian economy.
“Carbon Holdings was able to leverage its on-the-ground expertise in the oil and gas industry and deep knowledge of Egypt to develop a complete petrochemicals value chain offering a vast range of end products,” said Skelley. “The result, our circa US$11 billion TPC project, was met with outstanding enthusiasm from our international partners as well as local authorities given the expected transformational impact of the project in terms of import substitution, reduced logistics costs and risks of transportation, and the creation of backward links to downstream industries generating further opportunities for SMEs.”
Skelley highlighted that among the benefits of operating in the Suez Canal Economic Zone was the ability to maintain full foreign ownership of the entities and activities within the zone, the exemption of imports from customs duties and sales taxes, and no restrictions on profit repatriation. These incentives, Skelley believes, were key to Carbon Holdings success in attracting foreign partners and pursuing the firm’s strategic growth objectives.
“TPC’s success lies also in its direct impact on the Egyptian economy, with the complex expected to displace over US$300 million in polymer imports with US$3.5 billion worth of polymer exports. Once operational, total chemical product exports are expected to increase to close to US$6 billion from US$2.7 billion currently,” added Skelley.
TPC also plans to purchase circa US$1.5 billion worth of goods and services from Egypt during the construction phase, which will alone create approximately 35,000 direct and indirect jobs. Once operational, TPC is expected to employ more than 3,000 skilled workers, including both engineers and technicians, and as its products will be used as raw materials in manufacturing other goods, TPC has the potential to ultimately create more than 200,000 job opportunities in downstream sectors.
“TPC is a testament to Egypt’s vast investment potential. Our goal continues to be forming industrial entities that can streamline the value chain by transforming Egypt’s oil and gas resources into vital output for Egyptian manufacturers, thereby increasing local export growth and, in turn, supporting economic growth.”
TPC was launched as a national project by the Egyptian government in June of this year, with the signing ceremony attended by government officials, diplomats, export credit agencies, development finance institutions and other major stakeholders.
About Carbon Holdings:
Carbon Holdings is a privately owned midstream and downstream petrochemical and process industrial plant company and is the principal shareholder and sponsor of several projects in the industrial zone in the Northwest Gulf of Suez, Egypt. Established in 2008 by Chairman and Chief Executive Officer Basil El-Baz, Carbon Holdings is a leader in the development and operation of petrochemical manufacturing projects in Egypt. Its portfolio includes Oriental Petrochemicals Company (OPC), a top producer of polypropylene, and Egypt Hydrocarbon Corporation (EHC), the only producer of nitric acid and low-grade ammonium nitrate in the Middle East and Africa. The company is also establishing the Tahrir Petrochemical Complex with an investment of around US$11 billion, which will be located in Suez Economic Zone.
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Nick Lyon / Bertie Berger
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