The Saudi Egyptian Petrochemical Company (Sepco)has reached agreement with Germany's Zimmeron a $300 million contract for engineering and the supply of equipment for a polyester plan to be built in Alexandria. Sepco says Zimmer has received the initial downpayment, and has already started on the engineering work.

The main project sponsors are Saudi Arabia's Jehan Group, headed by Jeddah-based businessman Ahmed Badeeb, and the Saudi-owned Midroc(MEED 2:11:01).

The plant will produce 252,000 tonnes a year of partially oriented yarn, textile chips and fibres, and polyester resin (PET) for the local and export markets. It is scheduled to start up in 2003.