Raya Says To Complete Studies On Bareeq Plant PII In Days
Raya Holding for Technology and Telecommunication SAE (RAYA.CA) will be completing its feasibility study on the second phase of Bareeq Plant project for recycling plastics pellets within days.
Official source from Raya told Amwal Al Ghad that the company is targeting the completion of the study within days and seeking 50% finance from banks for the second phase of the project. The source noted that the U.S. dollar’s rise against the national currency contributes to the flourishing of the export activities for the current period.
The source added that the total expected cost for Bareeq plant’s second phase is around EGP 100 million; 50% to be financed by Raya and the other 50% through banking loans. The source stated that the most eligible candidates for funding Bareeq plant are the National Bank of Egypt (NBE), Societe Generale NSGB, Credit Agricole and Commercial International Bank (CIB).
The source said the capacity production of the first phase of Bareeq plant ranges between 13-18 thousand tons per year pointing out that Raya has exported about 85-90% of the factory’s total capacity production during the fourth quarter of 2012.
Moreover, the source stressed that Raya is mainly targeting exporting Bareeq plant’s products. Raya shall not negotiate with any other local companies on selling the plant’s products in local market. Raya is cooperating with a number of Turkish, Saudi, Qatari firms so as to export the plastic pellets to them after being recycled.
The source explained that the EU, US and GCC markets are the most major clients for Bareeq plant noting that Spain, the UK, the USA, France and the UAE are major countries importing the Egypt’s recycled plastic pellets.
He pointed out that the current political and economic events reversely affect the speed of negotiations and launching the Bareeq PII, pointing out that Raya is targeting the completion of all administrative procedures and begining its launch by March.
He added that the investment cost of the plant’s first phase is up to EGP 120 million on an area of 10 thousand m3 in 6th October region.
