The Egyptian General Petroleum Corporation (EGPC) has signed a memorandum of understanding to take a 10 percent stake in the Saudi-Egyptian Petrochemical Company (SEPCO) in a deal facilitated by Sigma Capital, a financial services and investment banking company active in Egypt and the Middle East.
With a total investment of $550 million and a production capacity of 300,000 tons per year, the Saudi-Egyptian Petrochemical Company will be the largest polyester production complex in the region when it goes on line in 2003, said the Middle East.
EGPC will invest $22 million for 10 percent of SEPCO's paid-up capital.
Minister of Petroleum Sameh Fahmi was quoted by the paper as saying that "the textile market is an important driver for the Egyptian economy."
The Egyptian textile industry employs approximately one third of Egypt's total labor force, however it still relies heavily on imported fabrics. SEPCO is expected to significantly reduce this dependency, the weekly added.
The Saudi-Egyptian Petrochemical Company (SEPCO) is an Egyptian joint stock company established under the provision of the investment incentives Law 8, issued in 1997 – Albawaba.com
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