Yokohama, Japan - JGC Corporation and its partners have finalized a plan to invest in an ammonia manufacturing and resale business in Egypt. The partners include KBR, Orascom Construction Industries (OCI), Egypt General Petroleum Corporation, Mitsubishi Corporation, as well as other investors. Ammonia will be used as a raw material for fertilizer.

The partners have established Egypt Basic Industries Corporation, an operation company in Egypt. The company will own and operate a manufacturing facility with an annual production volume of 700,000 tons of ammonia in the Suez Industrial Zone, an industrial district along the northeastern shoreline of the Suez in Egypt. Natural gas as the raw material of ammonia will be supplied by Egyptian General Petroleum Corporation. The facility will start production in the first quarter in 2009.

Known as a natural gas producing country, Egypt is directing efforts at diversifying its domestic industries. The new business in which JGC is participating is the manufacture and resale of ammonia for fertilizers using natural gas, which is much cost effective than from petroleum. The ammonia products will be exported to countries where demand is increasing; namely, Red Sea coastal countries and Asian countries.

In addition to its E&C businesses, JGC is actively enhancing investing in enterprises as a Non-E&C business strategy. This is the third business investment for JGC in the Middle East and Africa following investments made in power generation and water businesses in Abu Dhabi and Saudi Arabia.