Air Supply, Kima to establish medical oxygen plant in Egypt
By Nneka Nwogwugwu
Chairperson of Air Supply Group, Ahmed Refaat, announced that there will be signing offtake agreement with the Egyptian Chemical Industries, Kima, in which the former will build, own, and operate (BOO) Air Separation Units (ASUs) producing industrial and medical gases at Kima’s premises in Aswan.
Speaking during the signing ceremony on Wednesday, Refaat said that the project with KIMA will be one of the most important national projects in Upper Egypt, covering industrial, medical, and environmental dimensions.
Refaat noted that the project embodies the implementation of President Abdel Fattah Al-Sisi’s directives to boost cooperation between the public and private sectors. This deal was the first of its kind between the private sector and state-run Kima, in which it would provide Air Supply with a plot of land to build the factory.
Furthermore, Karim Sadek, the General Director of Air Supply Group and Director of the project, stated that new ASUs will produce 170 tonnes per day (TPD) of oxygen and nitrogen.
The project will be the biggest industrial and medical gases plant in Upper Egypt, a matter that qualifies Air Supply to be an exclusive supplier for Upper Egypt, Sadek said.
He mentioned that the project’s establishment and commission will be supervised by Italy’s SIAD Macchine Impianti, adding that the supply of gas will start within eight or nine months.
Kima is expected to use from 3,000 to 4,000 NM3/hr within four years, Sadek noted.
The project aims to supply Kima with its needs of industrial gases at a rate of 40-50% of the production capacity, adding that the surplus of the produced gas (estimated at 100,000 tonnes) will be provided to Upper Egypt’s hospitals and industrial sector.
During the same event, Managing Director of KIMA, Mohamed Hussein Radwan, said that his company aims to reach a loan restructuring agreement with a consortium of six banks in February.