EGYPT – The Egyptian Financial and Industrial Company (EFIC), involved in the production and marketing of agricultural chemicals is seeking to establish a new production line for compound fertilisers.
The company, according to Daily News Egypt is currently holding discussions at the Board of Directors level assessing the proposed investment, with the project to be announced within three to six months.
A total of 80% of the new line’s production is expected to be exported, with the remaining 20% to be sold locally.
The company’s management expects the project to take around three years to break even and contribute to cash flow, and in the long-run to double profits. However, funding for the project has not yet been decided.
EFIC’s local market share of 55%-60% is expected to be maintained in 2021. A total of 90% of the company’s production volume was sold locally during 2020, with the remaining 10% exported.
The company plans to increase its percentage of export sales in 2021 to about 20%.
The management is expecting its working capital to increase by 10% in 2021, due to a stock-up of inventories, and to cover the increase in sulphur prices that occurs in cold weather.
EFIC has two plants in Egypt which produce Sulphuric Acid used as a raw material, as well as Single Super Phosphate-SSP, Powder Single Super Phosphate-PSSP, and Granulated Single Super Phosphate-GSSP.
EFIC’s 99.9% owned subsidiary, the Suez Company for Fertilizers, produces and exports Sulphuric Acid, Single Super Phosphate-SSP, Granulated Single Super Phosphate-GSSP, Ammonium Sulphate, and Di-Calcium Phosphate.
Meanwhile, OCP Africa, subsidiary of leading global provider of phosphate and its derivatives in the region, OCP Group, is investing US$13m in the establishment of an Agricultural Centre of Excellence in Sokoto State, Northern Nigeria.
The facility will comprise of a fertilizer blending plant and a training center for farmers, fertilizer blenders and other stake holders in the agricultural value chain.
Having a production capacity of 200,000 MT per annum, the blending plant is expected to become operational in July 2021.
It has the capability to blend NPK with micronutrients and will leverage on Sokoto State’s large deposits of high-quality phosphate.
The state government has reiterated its support to the investments by availing 10 hectares of land at Kalambaina industrial layout for the development of the facility.
Once complete, it will provide direct jobs to 75 persons and contribute significantly towards the achievement of the food security goals of the country.
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