EGYPT – The board of directors of Abu Qir Fertilizers and Chemicals Industries Company (ABUK) has given a go-ahead for the establishment of its subsidiary “North Abu Qir for Agricultural Nutrients”, with an estimated investment cost of US$1.20 billion.
According to Zawya, the investment is envisioned to consolidate the country’s main nitrogen fertilizer supplier and expand its presence in the local and foreign markets.
Abu Qir Fertilizers is an Egypt-based company engaged in the agricultural chemicals sector. The company focuses on the production, distribution, and export of fertilizers, chemicals, and related products.
According to a filing to the Egyptian Exchange (EGX), the new project is set to have a production capacity of 1,200 tons per day of ammonia, 1,830 tons per day of nitric acid, and 2,400 tons per day of granular ammonium nitrate.
The project will be 70% financed by loans, with the remaining 30% to be financed by equity through a partnership between Abu Qir, the EGPC, and other shareholders who expressed interest in the project after obtaining the necessary approvals.
The founding assembly of the new company was shared by Tarek El-Molla, Egypt’s Minister of Petroleum and Mineral Resources by laying the foundation stone for North Abu Qir Agricultural Nutrients Company and also inaugurated the integrated industrial waste treatment plant in Abu Qir Fertilizers.
Egypt is the second largest fertilizer exporter in Africa after Morocco. In the country, the dynamic supply of nitrogen fertilizers is driven by the company Abu Qir Fertilizers and Chemical Industries.
According to the company, prior to the inauguration, Abu Qir Fertilizers’ board approved studying the establishment of the Green Hydrogen and Green Ammonia project in partnership with France’s Total.
The board revealed that the new site will be built on the land area owned by the Egyptian General Petroleum Corporation (EGPC), to have an equal share with ABUK of 45% stake each while the Egyptian Petrochemicals Holding Company (ECHEM) will own 10% of the company.
The investment comes after Abu Qir Fertilizers and Chemicals Industries Company (ABUK) reported a 125.86% year-on-year (YoY) surge in net profit after tax in the first half (H1) of the fiscal year (FY) 2022/2023.
The company reported that the surge reflected a net profit after tax of EGP 7.23 billion in the six months period ended December 31st, 2022, compared to a profit of EGP 3.20 billion in the same period of 2021.