By Andy Sambidge
Drake & Scull International signs deal to work on major industrial development at entrance of Suez Canal
Dubai-based Drake & Scull International has signed an agreement worth AED2.2 billion ($596 million) with Egypt's Carbon Holdings as part of the Tahrir Petrochemical Corporation Project development.
The contracting giant said it will carry out construction works and civil works, including storage facilities and ancillary buildings for the industrial development located at the entrance of the Suez Canal in Ain Sokhna, Egypt.
Carbon Holdings is aiming to commence construction of its $5bn-plus TPC Project in 2015.
The megaproject which includes Egypt's first naphtha cracker will create in excess of 20,000 jobs during the construction phase, Carbon Holdings said.
Once complete, the project will comprise a 4 million tonne-a-year naphtha cracker and related downstream facilities with the capacity to produce polyethylene, propylene, butadiene, benzene and hexene-1.
Carbon Holdings anticipates the project will be a driving force for other petrochemical and downstream projects in Egypt and could create up to 100,000 direct and indirect jobs in related industries.
Commenting on the award, Khaldoun Tabari, CEO of Drake & Scull International, said: "DSI is pleased to be part of this international consortium delivering this vital project which will transform Egypt's petrochemical sector.
"Egypt is our key market in North Africa and the project will enable us to further strengthen our position in the country where we already have a significant presence across the Oil & Gas, Waste Water and Water treatment and Hospitality sectors."
Year to date, the company has been awarded a series of contracts in the UAE, Saudi Arabia, Kuwait, Algeria, India and Europe for a combined value of AED1.68 billion. The Tahrir Petrochemical Complex deal takes the total value of DSI's project awards portfolio to AED3.88 billion as of May.
Dubai's Drake said last week that unforeseen delays to two major projects in Saudi Arabia were responsible for the contractor missing analysts' expectations with a 27.1 percent decline in first-quarter net profit.
The firm made a net profit of AED45.7m ($12.4m) in the first three months of 2014, compared with AED62.7m in the corresponding period of last year.