Deal agreed to build $120m Egyptian factory

Ties between Egypt's Orascom Construction Industries (OCI) and Italy's Maire Tecnimont have been further strengthened after the announcement of a $120m agreement to build a fertiliser factory in the southern city of Aswan.

Earlier this year, OCI and Tecnimont announced a partnership to explore potential fertiliser opportunities in sub-Saharan Africa and the companies have also combined efforts to work on industrial facilities in Ruwais, Abu Dhabi.

OCI will supply materials and execute the construction work for the nitrogen-based fertiliser complex in Aswan, on the eastern bank of the River Nile, which will be run by the Egyptian Chemical Industries Company (KIMA) when up and running.

The project is expected to take 33 months to complete.

OCI, currently constructing several power plants in Egypt and Algeria, were awarded a $181m contract for work on a 1,500MW combined cycle power plant in Giza.

The company was also amongst the bidders for the tender of the Guggenheim Abu Dhabi project, before the announcement last weekend that the art museum is reviewing its procurement strategy and will not be awarding contracts at this stage.