BMI's Executive Summary

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Market Overview

Egypt's chemicals industry includes fertilisers, plastics and other chemicals. The country has five major fertiliser plants that utilise hydrocarbon feedstock to produce fertiliser intermediates and constituents, such as sulphuric acid, nitric acid, ammonia, urea, ammonium nitrate, and finished, blended nitrogenous fertilisers. In 2006, Egypt's fertiliser exports reached US$78.55mn, up compared to US$38.74mn in the year 2005. By the end of Q107 it was reported to be US$ 19.35mn. In the same period, Egypt's fertiliser imports were US$40.46mn, up compared to US$228.79mn in the year 2005.

Business Environment

Egypt's location facilitates export to Asia, Africa and Europe, while the low-cost workforce makes the domestic industry more competitive. However, the country's global success is dependent on significant improvements in Egypt's institutional and political effectiveness and its readiness to formulate and follow stricter policies. The Egyptian government has introduced free zones that capitalise on the concept of Egypt as an export platform. Two types of free zones are being established in the country: public and private. Private free zones are established for a specific project or company to accommodate storage, warehousing, mixing and repackaging and manufacturing for exports.

Projects, Expansions And Developments

In September 2007, Japan's Mitsui and Company and South Korea's GS Engineering and Construction Corporation received a US$1.8bn contract to build a hydrocracker at a refinery in Egypt for the state-run Egyptian Refining Company. In August 2007, India's Reliance Industries decided to spend up to US$10bn in Egypt developing an oil refinery and petrochemicals facilities. It is thought Reliance will spend US$1bn on the oil refinery and around US$7bn on petrochemicals. In July 2007, it was reported that Egypt's oil ministry signed eight deals for oil and natural gas exploration worth US$660mn with several foreign firms including BP, Austria's OMV and Norway's Statoil. The ministry said in a statement the exploration deals cover an area of 34,000km2, including offshore fields in the Mediterranean Sea, along with areas in the Nile Delta and the Western Desert. The companies, which also include Germany's RWE and Algeria's Sonatrach, have committed to sink 28 wells.

Industry Forecast

Egypt has huge potential for expanding its chemicals exports. By the end of 2006, the Egyptian government forecasted chemical and pharmaceutical exports to the tune of US$1.06bn. Speciality chemicals and fertilisers are likely to be the key growth segments. During 2005-2009, the average growth rate was forecast to be about 5% in the chemicals sector. The country's chemicals products output is forecast to reach EGP26.91bn (US$4.68bn) by 2009, up from EGP23.28bn (US$4.06bn) in 2005.

Contents

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Chapter 1 - Executive Summary

Market Overview

Projects and Expansions

Business Environment

Industry Forecast

Egypt Chemicals Industry SWOT

Egypt Business Environment SWOT

Chapter 2 - Market Overview

Fertilisers

Table: Major Countries Exporting Fertilisers to Egypt

Plastics

Other Chemicals

Chapter 3 - Industry Trends And Developments

Business Environment

Table: Business Environment

Projects, Expansions & Developments

Chapter 4 - Industry Forecast Scenario

Macroeconomic Forecast

Table: Economic Indicators

Chapter 5 - Company Monitor

Profiles

The Egyptian Financial and Industrial Company (EFIC)

Kafr El-Zayat Pesticides and Chemicals Company

Chapter 6 - BMI Forecast Modelling

How we generate our industry forecasts

Chemicals & Petrochemicals Industry

Cross Checks

Competitive Landscape for Middle Eastern & African Chemicals: Sample of  
Companies Ranked

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Rankings and Competitive Landscapes by production and sales; market share and change on previous year; number of employees, ownership structure and year established. Also includes analysis of company expansion, export and investment strategies.