Signing a framework agreement with CNCEC in Beijing
The Egyptian Petrochemicals Holding Company witnesses the signing of a framework agreement with CNCEC in Beijing for the Red Sea Petrochemical Project. In a new step that reflects the growing strategic partnership between Egypt and China in the petrochemical sector, the Chinese capital, Beijing, witnessed the signing of a non-binding framework agreement between the Red Sea National Petrochemical Company and the China National Chemical Engineering Corporation (CNCEC) to implement the Red Sea Petrochemical Project in the Suez Canal Economic Zone.
The agreement was signed at CNCEC headquarters in the presence of a high-level delegation from both Egypt and China, emphasizing the strategic importance of the project, which is one of Egypt’s most prominent future projects in the chemical industry. In his speech, Engineer Ibrahim Abdel Qader Mekki, Chairman of the Egyptian Petrochemicals Holding Company (ECHEM), expressed his appreciation for the warm Chinese reception, noting that the agreement represents a milestone on the road to implementing a promising project that will enhance Egypt’s export capacity and create broad development opportunities. Mekki confirmed that CNCEC expressed its willingness to potentially contribute to the project’s equity, as well as the possibility of supporting it in arranging financing covering up to 85% of the value of the engineering, procurement, and construction (EPC) contract.
The event was attended by representatives from several prominent Chinese financial institutions, including the Bank of China, the Export-Import Bank of China, and Sinosure Export Insurance, indicating growing international confidence in the future of the Egyptian petrochemical sector. The Egyptian delegation included a number of senior officials, including Ambassador Khaled Nazmy, Egypt’s Ambassador to China; Ms. Rasha Ramadan, ECHEM’s Vice President for Financial and Economic Affairs; Mr. Mohamed El Saadawi, CEO of the Red Sea Petrochemical Company; and a number of consultants and experts involved in the project.
The Chinese side also included prominent leaders from CNCEC and its group of subsidiaries. Mekki explained that the Red Sea Project enjoys significant competitive advantages, most notably its strategic location near the Suez Canal, the availability of production unit licenses, and the readiness of its implementation plan. These advantages make it highly attractive for investment, especially in light of the growing global demand for products such as polyethylene and polypropylene.
He added that cooperation with CNCEC is witnessing rapid development, as three major contracts were signed this year with TCC, a subsidiary of the Chinese group, worth nearly $1 billion. These contracts include soda ash, mineral silicon, and bioethanol production projects, as part of Egypt’s efforts to reduce dependence on imports and localize strategic industries.
Mekki concluded his remarks by saying: “What we have witnessed today is only the beginning of working together with confidence and ambition to build a shared future of success and excellence.”
