CAIRO: Malaysian Phosphate Additives Sdn Bhd (MPA) will obtain a long-term supply of rock phosphate raw materials from an Egyptian company for its future development, says managing director Lim Lee Wan.
Both companies signed a Memorandum of Understanding (MoU) to facilitate the supply.
“MPA has managed to secure a long-term supply contract from El Nasr and they will provide us 600,000 tonnes of rock phosphate, annually, valued at US$90 million,” he told Bernama after the signing of the MoU with the Egyptian company.
Lim said the company currently secured its raw materials of rock phosphate from within the region but with the group’s on-going plans to establish an integrated phosphate plant in Samalaju, Sarawak, more raw material was needed to produce animal feed, fertilisers and food phosphate products.
“We plan to invest about RM890 million on the Sarawak plant with an annual production capacity of about 500,000 tonnes.
“We will be in good position to expand beyond the Malaysian market particularly in the Southeast Asia and Australian markets,” he said.
He added that phase one of the plant was expected to be completed by 2015.
MPA is a grant recipient from the Malaysian Technology Development Corporation and its current manufacturing facility in Lumut, Perak, produces 30,000 tonnes of phosphate.
El Nasr, a leading public enterprise company in Egypt, has 23 overseas branches in several Arab countries, Africa and Europe.
Meanwhile, MPA also signed MoUs with four other Egyptian companies that have plans to set up a phosphate plant in the republic.
“We had discussions on the collaboration to set a plant in Egypt and MPA will provide the expertise and technology but nothing has been finalised yet,” he said.
He expected the capital expenditure for the project to be between US$100 million and US$150 million and production to commence three years after the plant was established.
“Based on the initial study, there is demand for about 200,000 tonnes, annually, for food, industrial and feed phosphates in Egypt and there is a need to set a plant to serve this demand,” he said. — Bernama