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Sulphur 418 May-Jun 2025

3 May 2025

KMCJNC to fund new phosphate project in Egypt

EGYPT

KMCJNC to fund new phosphate project in Egypt

Chinese phosphate and battery chemical producer Chuan Jin Nuo Chemical (KMCJNC) has announced a $265 million plan to build a plant in Egypt to reduce its raw material and export costs. The company will construct facilities in the North African country to produce a range of intermediates and finished products, it revealed in its recent first-quarter earnings report. The plant will have a three year construction timeline. Planned capacities for the site are 800,000 t/a of sulphuric acid and 300,000 t/a of ammonium phosphate per year. Other core products will include phosphoric acid and sodium fluorosilicate. At full capacity, the plant is expected to generate over $41 million in net profit, according to feasibility studies.

KMCJNC says that Egypt’s strategic location at the crossroads of three continents, coupled with its position as the world’s third-largest holder of phosphate reserves, will optimise the firm’s business operations and significantly reduce raw material and export transportation costs. The company has been importing phosphate ore from Egypt since 2022 and has a comprehensive understanding of local supply dynamics, ensuring stable raw material procurement, it added. KMCJNC operates two production bases: one in Kunming and another in the southern port city of Fangcheng, in the Guangxi Zhuang Autonomous Region. Last year, more than half of the firm’s revenue came from exports, mainly to South Asia, Southeast Asia, and South America.

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