EGYPTIAN INDIAN POLYESTER COMPANY, S.A.E
Dhunseri Group has established a 4,20,000-TPA PET resin manufacturing facility at Ain EL Sokhna, a deep-sea port on the Red sea, in Egypt with 70% equity participation in its subsidiary, Egyptian Indian Polyester Company, S.A.E. (EIPET) which would cater to under-penetrated North African and European markets. The Line-I and Line-II of the said manufacturing facility commenced commercial production in February 2014 and May 2014 respectively, The balance shareholding is being held by Egyptian Petrochemicals Holding Company (ECHEM) and Engineering for the Petroleum and Process Industries (ENPPI) (both government companies). The manufacturing facility is having a private free-zone status from the government, amounting to duty-waiver benefits on the import of capital goods and raw materials and the export of finished goods.
Africa and the Middle East are expected to emerge as dominant MEG producers, resulting in an easy access to required raw materials and lower transportation cost.
EIPET suffered loss in its first year of operation in calendar year 2014 mainly due to inventory losses consequent to sharp decline of crude oil prices. EIPET plant stopped its production in May 2015 due to shortage of working capital.
EIPET has approached the local banks for restructuring of the loans. The operations are yet to commence as negotiations with the lenders on restructuring is pending.