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Egyptian Ammonia Plant Opens Following USTDA-Funded Study

An ammonia production plant in Ain Sokhna, Egypt, was constructed using more than $275 million in U.S. exports of goods and services. A USTDA-funded early investment analysis for the project sponsor, Egypt Basic Industries Corporation (EBIC), laid the ground work for EBIC to move forward with this project, which is providing significant economic benefits to the Egyptian economy.

The project is part of an effort to increase Egypt's fertilizer output to meet growing domestic and international demands. The USTDA-funded study, which was conducted by the M.W. Kellogg Technology Company, now Kellogg Brown & Root Company (KBR), provided the foundation for the development of a modern fertilizer plant that utilizes KBR technology and conforms to new environmental laws. Based upon the completed study, the Export-Import Bank of the United States approved a $229 million long-term guarantee to support KBR's offer to build the plant. To date, 33 U.S. companies in 11 states have realized business as KBR suppliers in the engineering and construction of the plant.

EBIC Chairman Basil Elbaz and Managing Director Dr. Amr Hassaballah noted that USTDA's assistance was an effective catalyst in moving the project forward. "USTDA fueled a first step…and provided a roadmap for us to follow," they said.

The plant began operation in 2009 and is producing 2,000 metric tons of ammonia per day. Based on the plant's progress so far, EBIC has taken preliminary steps toward replicating the project on a larger scale, which may lead to significant additional U.S. exports in the future.