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Egypt Hydrocarbon to Build Nitric Acid and Ammonium Nitrate Facilities in Egypt

Egypt Hydrocarbon Corporation (EHC), an affiliate of Carbon Holdings, announced they have concluded financing and have begun work on a world-scale chemical complex in the Suez region of Egypt.

The complex includes both nitric acid and ammonium nitrate facilities. The announcement was made by Mr. Basil El-Baz, Chairman and CEO of Carbon Holdings, at a signing ceremony for the $298,000,000 loan facility held in Cairo, Egypt.

The Initial Mandated Lead Arrangers for the loan facility are Ahli United Bank (Egypt) and Ahli United Bank (Bahrain) who are the Bookrunners, Banque Misr who is the Security Agent, and Commercial International Bank (Egypt) who is the Facility Agent.

The Engineering, Procurement and Construction contract and Technology Licenses have been executed with Uhde Gmbh, a wholly owned subsidiary of ThyssenKrupp AG.

“This project is a significant step for Carbon Holdings and EHC in our plan to execute three major projects over the next five years. As a private company, we have the ability to efficiently evaluate market dynamics and implement projects in a timely manner, and this project is the result of that capability," said Mr. El-Baz.

The complex converts ammonia feedstock to 925 metric tons per day of nitric acid which is further processed to produce 1,060 metric tons per day of low density ammonium nitrate.

Start-up of the facility is estimated in 2013.

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