SPREA MISR

Founded in 1989 and acquired by EKH in 2007, Sprea Misr has developed into one of the largest manufacturers and exporters of petrochemicals and plastics in Egypt, thanks to the careful management and oversight of EKH, which holds a 100% stake in the company.

Sprea Misr produces top-of-the-line urea, melamine and formaldehyde products at its factory complex in 10th of Ramadan City. Our 41,439-square-meter facilities have a combined 270 kiloton production capacity. Flagship products include molding compounds, glues and resins, as well as new production lines of Formica sheets and powder glue launched in 2013. Our Formica plant is strategically planned to replace imports, with capacity currently at around 1.8 million sheets per annum at year’s end 2014

twice that of its initial capacity at inception in July 2013. With specialized production facilities and a unique range of petrochemical products, Sprea Misr is the trusted supplier of large and small companies alike both in Egypt and abroad, enjoying a healthy market share across its product lines in Egypt thanks to unmatched pricing, quality and after-sales service.

Sprea Misr has implemented an aggressive growth plan that has led to expansion into new markets, such as the Formica sheet plant, while the roll-out of a cost reduction program has further enhanced margins. The company’s diverse array of products enables it to target several industries including fertilizers, plastics, pharmaceutical, textile, automotive, construction, industrial manufacturing and water treatment, while production flexibility allows Sprea Misr to change production lines to capitalize on demand changes or short-term price increases. The petrochemical sector, in general, has significant barriers to entry given industry knowhow, providing the company with an additional competitive advantage.

Furthermore, Sprea Misr is looking forward to the launch of its sulfonated naphthalene formaldehyde production, which commenced production in Q1 2016. Sulfonated naphthalene formaldehyde is a key additive for ready-mix cement. This additive, which allows ready-mix to dry faster and smoother, is currently not produced in Egypt, and given the relatively low CAPEX required to start operations, Sprea will be positioned as a cost-effective local supplier ready to capitalize on the growth of the cement and real estate industries.

Egypt’s strategic geographic location facilitates Sprea Misr’s exports, which currently span more than 38 countries in Africa, the Middle East, Europe and Latin America. Exports account for more than 35% of total sales, with plans to expand its international footprint going forward.