Business model

Egyptian Indian Polyester (EIPET) is constructing a polyethylene terephthalate (PET) resin plant in the port town of Ain Sokhna, Egypt. The estimated cost of the project is $160m.

The manufacturing facility will produce 1,200t of PET resin a day and 420,000mt of PET plastic chips a year.

The products will be used to make packaging bottles for food and fast moving consumer goods (FMCG).

About 20% of the produce will be used locally and the remaining amount will be exported to European and North American markets. The plant is expected to generate $700m in revenues when fully operational.

The PET resin plant will contribute towards the local community by creating 800 jobs during construction and another 500 permanent jobs when fully operational. In addition, it will create foreign exchange reserves for Egypt.

Location of the polyethylene terephthalate (PET) resin plant

The new facility is being constructed in sector two of the Eldorado Integrated Development and Free Zone, located northwest of the Suez Gulf. The facility was originally planned in 2010 to come up at Port Said.

The implications involved in obtaining approval from the Ministry of Defence has, however, prompted the company management to change the location and postpone construction until March 2011.

Political unrest in Egypt in 2011 resulted in further delays to the project.

The plant will come up on a 470x300m plot in the free zone.

The site is connected to the Red Sea coastal highway. Raw materials and products will be transported along the highway directly from the Ain Sokhna port located in the south of the industrial park.

The site comes under Category B of the International Finance Corporation’s (IFC) environmental and social review procedures.

This means the facility may result in certain social and environmental issues which can be mitigated by following the given procedures and guidelines.

The plant will conform to generally recognised performance standards and Egyptian regulatory requirements