Chinese firm Shandong Qingdao Link Technology plans to construct an integrated carbon black and silica production complex in the Sokhna Industrial Zone of the Suez Canal Economic Zone in Egypt. The total investment of the project is about US$130 million, according to news reports.
The company, which has set up a new company known as Link Egypt Materials, plans to build two production units with an annual output of 100,000 tonnes of carbon black and 100,000 tonnes of silica respectively, with a total production capacity of 200,000 tonnes. The expected construction period is 18 months. The construction content includes the main production lines of carbon black and silica, and is simultaneously equipped with warehousing, environmental protection treatment, waste heat recovery, R&D centre and office supporting facilities.
Link Technology stated that the core purpose of this Egyptian base layout is to be close to overseas terminal markets, reduce cross-border logistics costs and import and export tariff expenditures, shorten delivery cycles, and improve the response efficiency to overseas customers.
After the project reaches full production, it is expected to achieve an annual operating revenue of more than 1.27 billion yuan, with a net profit of 188 million yuan.
Silicon dioxide and carbon black are important reinforcing fillers for tyres, to reduce their rolling resistance, helping vehicles cut fuel consumption and carbon emissions.