Egypt establishes project to produce MDF from rice straw

CAIRO – 13 February 2020: The Egyptian Wood Technology Company (WOTECH) signed an agreement with Petrojet Company to establish a project for the production of medium-density fibreboard(MDF) in Beheira Governorate.

In addition to Petrojet, which is the general contractor of the project, WOTECH signed another agreement with the German Siempelkamp Company -the technology supplier of the project.

The signing took place during the third day of the Egypt Petroleum Show (EGYPS 2020).

The new project includes a factory for the production of medium-density fibreboard(MDF) by rice straw with a production capacity of 205,000 square meters annually according to the latest European specifications with the usage of Siempelkamp’stechnology in manufacturing.

The project thus provides a high-quality local product that is used and needed by many industries and areas such as furniture, building materials and decoration.

The project will be established with a full Egyptian capital from the oil sector, and the shareholders include the Egyptian Petrochemicals Holding Company, the Egyptian General Petroleum Corporation, SIDPEC and Petrojet.

Minister of Petroleum and Mineral Resources Tarek el-Molla explained that the project, whose cost is estimated at €210 million, is also one of the effective solutions implemented by the Ministry of Petroleum to support the state's efforts to transform rice straw from an environmental challenge into an opportunity for economic exploitation and an added value.

“The project is one of the most important projects that the Ministry of Petroleum and Mineral Resources aims to implement within its plan to expand the petrochemical industry, which aims to establish new projects that contribute to providing raw materials and major production inputs for many industries on the local market,” Molla added.

In October, The Ministry of Petroleum announced the establishment of the first Egyptian company to convert rice straw into medium-density wood panels. The company will be located in Beheira governorate at a cost of €210 million.