DrasChem to build $200M sodium cyanide plant at Sidpec complex
Updated 2/8/2026 11:51:00 AM
Arab Finance: DrasChem Specialty Chemicals is moving forward with plans to establish a sodium cyanide production plant at the Sidi Kerir Petrochemicals (SIDPEC) complex in Alexandria, following high-level discussions with the CEO of the General Authority for Investment and Free Zones (GAFI) Mohamed El-Gawsaky, as per a statement.
The company has already secured Cabinet approval to operate under the special free zone system, confirmed its compliance with Egyptian and international chemical standards, and begun the design and construction phase.
It has also signed contracts with raw material suppliers. The project’s first phase, with an initial investment of $200 million, is expected to be completed by 2028.
Once operational, the plant will produce and export 50,000 tons of sodium cyanide annually, primarily used in gold extraction.
Subsequent phases will explore either doubling production or manufacturing sodium cyanide derivatives, before a third phase focused on producing components for sodium-ion batteries.
El-Gawsaky said GAFI would provide all necessary support to accelerate construction and enable production to begin as soon as possible.
Additionally, he noted that the project aligns with several government priorities, including boosting exports, transferring technology, deepening local manufacturing, and creating new job opportunities.
He also said the factory would benefit from the state’s economic reform program, which has improved monetary, financial, investment, trade, and logistics indicators.
The GAFI CEO encouraged Egyptian companies to adopt integrated, export-oriented manufacturing strategies, with a focus on African markets.
He pointed to Egypt’s competitive position on the continent and the expanded market access offered by trade agreements, particularly the African Continental Free Trade Area (AfCFTA).
Moreover, El-Gawsaky said the Ministry of Investment and Foreign Trade is targeting an export increase of around $4 billion compared with 2024, when exports reached $7.7 billion, with the chemicals sector identified as a key driver.
He added that DrasChem’s sodium cyanide has an added advantage given its importance to Africa’s gold mining industry, which accounts for about a quarter of global gold production.
El-Gawsaky also highlighted the role of sodium-ion battery products in supporting the government’s plans to raise local content in renewable energy storage solutions, including applications in data centers and electricity transmission networks.
Bassem El Shemmy, Vice President for Strategic Partnerships at Austria's Petrochemical Holding GmbH, DrasChem’s largest shareholder, said Egypt was an ideal location for the project due to its proximity to African and Middle Eastern export markets, recent upgrades to roads and ports, and the availability of key raw materials such as natural gas, ammonia, and sodium hydroxide.
El Shemmy added that the project’s partner, Czech company Draslovka, will for the first time transfer technology developed at its US facilities to Africa and the Middle East.
He said this would help position Egypt as a regional hub for gold extraction technology and sodium-ion battery production, which he described as a more sustainable and cost-effective alternative to lithium-ion batteries.
For his part, Andrey Yurkevich, Deputy Managing Director of Strategy and Business Development at Petrochemical Holding, said the Egypt-based plant is expected to create up to 500 direct jobs and generate around $120 million in annual revenue.
He added that the project would stabilize local supply chains and reinforce the country's regional role as the first sodium cyanide production facility in Egypt and the Middle East.
Yurkevich stressed the company’s commitment to meeting all Egyptian and international environmental and regulatory standards, adding that the plant’s advanced technology is more environmentally friendly and eliminates the costs and pollution associated with importing and transporting the material.
He also agreed with the focus on African exports, noting that Egypt will become the first African country to export sodium cyanide within the continent.
He said the initial output will be five times the current domestic demand, while also covering a significant share of African gold mines’ needs.
Related News
