Egypt has signed a strategic partnership agreement with Trafigura, a commodities trading company, to expand the Nag Hammadi Aluminum Complex. The investment range for this project is between US $750mn and $900mn.
The agreement was signed between Metallurgical Industries Holding Company (MIHC), through its subsidiary Egyptalum, and Trafigura in the presence of Prime Minister Mostafa Madbouly.
The project entails the construction of a new production line with an annual capacity of 300,000t. This expansion will double the complex’s total output capacity to 600,000t per year. Additionally, a 150,000t per-annum anode plant will be established.
A new joint venture company will be established to develop and operate the project. Financing will combine partner equity and debt from international financial institutions with EFG Hermes acting as financial adviser. Trafigura will secure long-term alumina supply and market the aluminium output under long-term off take agreements.
The expansion will be executed under a lump-sum turnkey EPC model to reduce risks related to cost overruns and delays. Officials said the expansion comes amid growing global demand for aluminium – projected to expand from 1.3% per annum to 2.1% per annum – driven by Electric Vehicles (EVs) and packaging industries.
The project will deploy energy-efficient and environmentally friendly technologies to reduce emissions and enhance competitiveness in markets with stringent carbon regulations. Additionally, the expansion is anticipated to generate direct and indirect employment opportunities in Upper Egypt.
EFG Hermes, which acted as the sole financial advisor to the MIHC and Egyptalum on the partnership, said in a separate statement that the newly incorporated project company will be majority-owned by MIHC and Egyptalum serve as the vehicle for developing, owning, and operating the new production facility.
Trafigura will play a significant role in the expansion project by participating as a substantial minority equity investor, providing debt, and serving as a long-term partner for offtake and feedstock supply. EFG Hermes is providing advisory services for both the equity and debt raising processes.
Egyptalum stands as the largest primary aluminum producer in North Africa, boasting a total annual capacity of 320,000t. Notably, 60% of its exports are destined for the European Union (EU).
Hence then, the article about egypt partners with trafigura to expand nag hammadi aluminum complex was published today ( ) and is available on ME CONSTRUCTION NEWS ( United Arab Emirates ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Egypt partners with Trafigura to expand Nag Hammadi Aluminum Complex )
Also on site :
- Multiple bodies found in Union Pacific boxcar at Texas railyard
- Martin Short addresses daughter's tragic death publicly for the first time two months after she took her own life at 42
- Grovy Developers and Wyndham launch Ramada Residences