Air Supply Group has signed a gas-off take agreement with the Egyptian Chemical Industries Company (KIMA), the first deal of its type between KIMA and the private sector. Speaking on the sidelines of the signing ceremony in Cairo, Ahmed Refaat, chairman of Air Supply Group, said the medical oxygen production project with KIMA is one of the most important national projects in Upper Egypt, covering industrial, medical, and environmental dimensions. Refaat noted the project embodies the implementation of Egyptian President Abdel Fattah al-Sisi's directives to boost cooperation between the public business sector and private sector. Meanwhile, Karim Sadek, general director of Air Supply and director of the project, said an Air Separation Unit will be established in Aswan to produce 170 TPD ( Tonnes Per Day) of oxygen and nitrogen. Sadek pointed out that KIMA would provide Air Supply with a plot of land to build, own, and operate the factory in accordance with good and safe industry practices and appliable law. The project will be the biggest gas plant in Upper Egypt, a matter that qualifies Air Supply to be the exclusive supplier in Upper Egypt, Sadek added. The establishment and commission of the project will be supervised by Italy's SIAD Macchine Impianti, Sadek said, adding the supply of gas would start within eight or nine months. KIMA is expected to use from 3,000 to 4,000 Normal Meter Cubed per Hour (NM3/hr) within four years, he stated. The project aims to supply KIMA with its needs of industrial gases at a rate of 40-50 percent of the production capacity. The surplus of the produced gas (estimated 100,000 tonnes) will be provided to Upper Egypt hospitals and industrial sector Mohamed Hussein Radwan, managing director of KIMA, said the company aims to reach a loan restructuring agreement with a consortium of six banks in February. The deal targets to reduce the percentage of the company's interest rate payable to be 4.6 percent for the dollar loan instead of 6 percent and 1.75 percent for the Egyptian pound loan instead of 3 percent, Radwan added. The consortium includes the National Bank of Egypt (NBE), Banque Misr, Arab African International Bank (AAIB), Banque Du Caire, Blom Egypt Bank, and Egyptian Arab Land Bank (EALB). Founded in 2011, Air Supply Group is a gas services providers group operating in Egypt and MENA region that offers services in industrial and specialty gases, dry ice, chemicals, equipment, engineering, and logistics solutions.
