08-01-03 Plans for a $ 1.5 bn ethylene and polyethylene complex in Egypt are progressing according to Dr Sherif I.A. Ismail, executive deputy chairman at the Egyptian Petrochemicals Holding Company (Echem). A Memorandum of Understanding has been signed and a detailed feasibility study is underway.
Echem will be an equity partner, said Ismail. The construction contract is expected to be awarded in 2004 and the plants are forecast to be operational in the last quarter of 2008.

About 80 % of the plants' output is expected to be targeted for export. Once the complex is profitable, which Echem estimates will be three years after the start-up, Echem plans to divest its interests in petrochemical ventures by tapping the global capital markets. In this way Echem will generate funds to launch the next phase of petrochemical initiatives, said Ismail.
Established in January 2002, Echem manages Egypt's petrochemicals industry.