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Indian TCI Sanmar re-increases its investments in Egypt up to $1.625bn - Daily News Egypt

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Indian TCI Sanmar re-increases its investments in Egypt up to $1.625bn

‘We plan to enter new exports markets like UAE, other Middle Eastern countries,’ says chairperson


Indian company TCI Sanmar Chemicals SAE is likely to add further investments worth about $125m to its current $1.5bn investments in Egypt, which pushes the company’s total investment to reach $1.625bn, according its chairperson PS Jayaraman.

Notably, TCI Sanmar announced in 2016 that it is increasing its investments up to $1.5bn from $1.3bn, since the company implemented an expansion plan.

Details of new expansion plan

The company has invested till now about $1.5bn in Egypt, Jayaraman told Daily News Egypt, noting that his company has expanded caustic soda production further by 75000 MT annually from 200,000 MT to 275,000 MT, which is completed and operational now.

“Total capacity of PVC capacity has increased from 200,000 MT to 400000 MT per year with a new PVC plant with a capacity of 200000 MT set up under Phase 2 expansion plan,” mentioned Jayaraman adding that commercial production of PVC new plant is expected to start in September.

The company installed a new plant to produce Calcium chloride granule with the capacity of 130,000 MT per year, as part of Phase 2 of the expansion, said Jayaraman, noting that its commercial production is expected in September.

“Additional PVC production of 200000 MT annually, additional Caustic Soda production of 75000 MT annual and Calcium chloride granule of 130,000 MT annually, will be added to our capacity,” noted Jayaraman.

“In terms of our five year strategy, the company is planning to double its Calcium Chloride capacity from 135000 MT/year to 270000 MT/year. Furtherly, the company is planning to add a new line for manufacture of Chloromethanes,” said Jayaraman.

Meanwhile, the company expects an additional investment about $125m for achieving the above mentioned expansion plan, added Jayaraman.

2018’s exports likely to hike to $256m

The company’s exports of 2017 reached $127m, while projection for first half of 2018 is $90m and projection of 2018’s exports are $256m, mentioned Jayaraman, explaining that Italy, Turkey, Romania, India, Morocco, Greece, and China are the main markets of the company.

“We plan to enter new exports markets like UAE and other Middle Eastern countries. We may also add a few African Countries,” said Jayaraman.

Moreover, the company has a total of 1,277 employees that have several training programmes to cater to the requirements of employees at various levels, noted the chairperson.

“At the entry level, we are proposing to launch a GET (Graduate Engineer Trainee) programme under which fresh graduates are enrolled and put through an intensive, structured training programme for 24 months, involving both’ on the job’ and ‘class room’ training. This training will significantly enhance the employability of such trainees and depending on our needs we may absorb a part of such successful trainees,” said Jayaraman.

Furthermore, Jayaraman explained that the company has an ongoing skill enhancement training programme for regular employees, at the operational and managerial levels, adding, “we also have extensive training programmes in health, safety, and environment for employees at all levels.”

These training programmes include mock drills, training in first-aid, firefighting, and many such useful skills, to enable a safe work environment, noted Jayaraman.

“Apart from using our in-house resources for imparting the above mentioned training programmes, we also draft services of experts from Egypt and India, so as to ensure that the people working in our company get the best-in class training,” said Jayaraman.

Environmental aspects commitments

“I would like to highlight on the environment conditions of our company’s activities in Egypt. We have the EEAA Audits result zero violation year to date, Green belt project established in west side facing emirate housing and tender for the trees and irrigation network was completed,” mentioned Jayaraman.

Environment measurements campaign has been done for the whole complex by third party, said Jayaraman adding, “the audit included stack emission measurements SOx, NOx, CO, dioxin, and furan, as well as ambient air measurements at south and north side of the complex. All the results came within the limits of Egyptian environment regulations.”

“We are happy with the Egyptian business environment, which is improving, especially, as a result of political and economic stability,” said Jayaraman, reaffirming the company’s confidence that the liberalization initiatives taken by the government, will help in further strengthening the economy.

The company strongly believes that PVC industry including the upstream and downstream industries is very well suited to grow rapidly in Egypt because of the easy and cost-effective access to raw materials and markets excepting for the unfavourable duty structure, mentioned Jayaraman.

The main raw material, EDC, suffers an Import Duty of 2% the finished product PVC is being allowed to be imported into the country at 0% Duty, added Jayaraman, noting, “this inverted Duty Structure, in our opinion, has been restricting the growth of this very vital industry in Egypt. We have brought this to the notice of the Government on several occasions in the past.”

CRS activities

There are some CSR activities under taken by TCI Sanmar including Vocational training programme for Youngsters in Port Said, which involves extensive classroom and practical session and culminates in certifying the successful candidates in a well-attended public programme, said Jayaraman.

The first batch of 80 candidates have already got certified and more launches are in the pipeline, added Jayaraman, noting that another CSR programme is free treatment of local people from hepatitis virus C, in addition to supporting more than 400 families in nearby villages with food and other essentials for their livelihood’ programme.

Moreover Jayaraman said that there are no plans as of now for TCI Sanmar Chemicals SAE to have offices in Africa.

https://ww.dailynewssegypt.com/2018/09/09/indian-tci-sanmar-re-increases-its-investments-in-egypt-up-to-1-625bn/
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