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OCI awarded L.E 700 m works package for KIMA fertilizer complex

Orascom Construction to execute civil, electromechanical and erection works for Egyptian Chemical Industries Company (KIMA) in Aswan, Egypt.
Orascom Construction Industries (OCIC) announced today that it has signed a construction contract with Maire Tecnimont SpA (Tecnimont) to execute civil, electromechanical and erection works for Egyptian Chemical Industries Company’s (KIMA) nitrogen-based fertilizer complex in Aswan, Egypt.

OCI will also supply the structural steel, painting and insulation materials required for the project. The subcontract works are valued at EGP 700 million or approximately US$ 120 million. The entire Engineering, Procurement and Construction (EPC) contract is expected to be complete in 33 months.

The nitrogen-based fertilizer complex will consist of ammonia and urea production lines as well as a urea granulation unit and all related utilities and ancillary facilities. Once complete, the complex will have an annual production capacity of approximately 550 thousand tons of nitrogen-based fertilizers per year which will help increase fertilizer production for local consumption.

The EPC and subcontract works will rehabilitate KIMA’s existing facility and replace the existing decades-old fertilizer technology helping the plant save significant power and become more energy efficient.

In March of this year, OCI and Tecnimont announced a 50/50 partnership mandated to explore potential fertilizer opportunities in sub-Saharan Africa. The companies are also currently collaborating on the Borouge 3 Polyolefin Units and Utilities & off-site facilities in Ruwais, Abu Dhabi.

OCI Construction Group Chief Operating Officer, Osama Bishai, commented, “over the past decade the Construction Group has developed core competencies and clear competitive advantages in the petrochemical sector in the Middle East and North Africa regions. More specifically, the Group has built an impressive track-record in the fertilizer sphere and has built north of 50% of the plants in Egypt. We look forward to building on our strategic partnership with Tecnimont by jointly exploring further fertilizer opportunities in the future.”