The Clap
Abu Qir Fertilizers (ABUK) board of directors have agreed in principle to establish 3 factories at a total cost of $1.2 billion.
The Factories
One factory will go towards producing ammonia at a capacity of 1,200 tons per day. Another will produce nitric acid at a capacity of 1,830 tons per day, and the third will produce ammonium nitrate with a capacity of 2,400 tons per day.
Abu Qir will also establish a company to manage the entire project, which will be financed 70% by debt and 30% from Abu Qir’s retained earnings. The project’s expected internal rate of return is 12.6%.
The Egyptian General Petroleum Corporation will also participate in the funding.
Claps Class
The internal rate of return is a measure of the profitability of a particular investment, and as a general rule the higher that rate, the more profitable the investment.
In Related News
The company expects revenues in the 2022/2023 fiscal year to reach EGP 11.4 billion.
For Abu Qir’s full statement, click here.
