Sidi Kerir Petrochemicals Company (SKPC) announced in its Ordinary General Meeting (OGM) minutes that it is sticking to plans to set up a new propylene and polypropylene project.

While management has already selected Honeywell UOP and Grace as the technology providers for the project, worth $1.2bn in investments, no further developments have been announced regarding the main contractor.

Naeem Research anticipates that the project’s equity portion is expected to be funded via a capital increase, with NI Capital already appointed as the financial advisor.

No new developments on the closure of the project’s debt portion, which is reportedly contributing up to 70% of the project’s costs, have been announced. There remains a stock overhang for the project which will be released once an impending rights issue is settled.