An Egyptian bank and a leading Chinese chemicals company have signed a memorandum of understanding (MOU) to jointly establish a soda-ash factory in Egypt, Xinhua learnt here Monday.

Under the MOU, signed between the China National Chemical Engineering Corporation (CNCEC) and the National Bank of Egypt on Sunday, the soda-ash factory with joint investment is to be built in Fayyum, 85 km south of Cairo, Cao Jiachang, the commercial counsellor at the Chinese Embassy to Egypt, told Xinhua.

Cao said that the deal is a fruit of the strengthened Chinese- Egyptian economic and trade cooperation after the Forum on China- Africa Cooperation and Egyptian President Hosni Mubarak's visit to China in early November.

Egyptian Trade and Industry Minister Rashid Mohammed Rashid also hailed in a statement that "this deal comes as one result of the sustained efforts by Egypt to strengthen and deepen its economic ties with China. We want to attract Chinese investors to use Egypt as a production base and a natural gateway to Europe, the Middle East and Africa."

According to the statement, the cost of the first phase of this joint investment will amount to 90 million U.S. dollars and the MOU also prescribes a joint contract to be signed between the two parties early next year.

CNCEC, a leading manufacturer of petrochemicals, fine chemicals and fertilizers, is directly administrated by the State Council of China.

Cao revealed that the Chinese company is also mulling a China- Egypt-Kuwait joint establishment of a 700 million-dollar chemicals and petrochemicals industrial complex in Fayyum, which is expected to be finalized as early as in January 2007.

It also agreed with Egyptian Oil Minister Amin Sameh Samir Fahmi on forming three joint working groups in the refinery, petrochemicals, and petroleum engineering spheres, he added.

Source: Xinhua