Fathy Mahmoud, investor relations Officer at Egyptian Chemical Industries (KIMA), said that the new factory in Aswan is fully complete and has a combined capacity of 800,000 tonnes of urea and ammonium nitrate. The plant will have a daily ammonia production capacity of 900 tonnes, – 1,200 tonnes for the production of urea, and 300 tonnes of ammonium nitrate (low and high density). The plant’s completion and trial run has already been concluded; full scale commercial take off is expected for April 2020. The total investment cost of the project sits at EGP12bn, and has been funded by both debt and equity.
He said that gas is expected to be sourced from EGAS at S3.5 per million British units (according to estimates). Upon the start of the new plant, the existing facility would cease operations for a temporary period. Furthermore, any rise in subsidised urea prices (currently capped at EGP3,200 per tonne) will be definitely positive for KIMA, given the selling price’s 20% discount (for 30% of KIMA-2’s output).
KIMA plans to target sales worth EGP4.5bn within the next fiscal year (2020-2021). It also aims to reach sales worth EGP6bn within two years, according to the new factory production and the global market price of a tonne of urea.