Egypt Wants a Bigger Chunk of Brazil’s Oil Industry

    Egypt plans to enter the list of great suppliers for the Brazilian petrochemical and plastics industry. Last year, Brazil’s factories spent around US$ 643 million with the import of resins, their main raw material. The Arab country was not included in the list of suppliers.

    Egypt sold to Brazil, however, naphtha for use in the petrochemical industry in the production of resins, among them polyethylene, polyurethane and polypropylene.

    Still imports dropped when compared to the previous year. Last year, Egypt sold US$ 8.9 million in naphtha for the petrochemical industry to Brazil, US$ 2 million less than in 2003.

    The Egyptian diplomatic corps in Brazil are making an effort to change this picture. On Friday, February 11, the Egyptian commercial consul in São Paulo, Mohamad Bakri Agami, and the secretary general of the Arab Brazilian Chamber of Commerce (CCAB), Michel Alaby, will meet the president of the Brazilian Plastics Industry Association (Abiplast), Merheg Cachum.

    They are goint to discuss the possible business opportunities between the Brazilian petrochemical and plastics industry and Egyptian suppliers.

    The Egyptian ambassador in Brazilian capital Brasí­lia, Mohamed Abdel Fattah, had already shown, during a visit to the Federation of Industries of the State of São Paulo (Fiesp), at the end of last year, interest in increasing Egyptian petrochem sales to Brazil.

    “We are also greatly interested in doing good business with the Arab countries. There is space for the purchase of Egyptian resin if the country offers attractive prices,” stated Cachum.

    Brazil has been significantly increasing its exports to Egypt, but the same cannot be said about imports. Last year, Brazil had revenues of US$ 623 million with sales to the Arab country and imported just US$ 33.4 million.

    “If we open the door to petrochemicals, Egypt may increase its sales to Brazil,” stated consul Agami.

    The Brazilian industry of transformed plastic products purchases a large part of the resins it uses on the domestic market, but it also imports from Asian and European, countries and from the United States and Mexico.

    The sector produces from packages, shoes, household appliances and civil construction equipment, including pipes and connections, to components for televisions, radios, and electronic products.

    Last year, the Brazilian plastic products industry had revenues of over US$ 11.5 billion. For this year, according to Cachum, the sector hopes for revenues of between 8% and 10%.

    Trade Balance

    The Brazilian plastics industry has also been increasing its exports. Last year sector foreign trade revenues reached US$ 792 million, with growth of 24% over 2003. Imports of finished plastic products also rose. They grew from US$ 823.6 million in 2003 to US$ 1 billion last year.

    Egypt was included in this balance, but with small participation when compared to the total. In 2004, Brazilian companies exported US$ 840,000 in transformed plastic products and imported US$ 390,000.

    Translated by Mark Ament
    ANBA ”“ Brazil-Arab News Agency


    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.


    You May Also Like

    Brazil Unemployment Stays at 9.6% for Five Months in a Row

    Approximately 1.5 million new registered, on-the-books, jobs were created in 2005 in Brazil, according ...

    Brazil’s Lula and Bush Should End Their War

    Brazilian President Luiz Inácio Lula da Silva is the most traveled of all Brazilian ...

    Brazil: Too Tense for Comfort

    Several moderate politicians and the press have criticized the overly lenient attitude of Brazilian ...

    Sarney Blarney

    A Federal Police raid, to check on allegations of misappropriation of public funds by ...

    New Highway Gives Brazil Access to the Pacific and Asia

    The construction of a highway corridor connecting the Atlantic to the Pacific Ocean is ...

    Brazilian Minister Criticizes High Interest Rates

    Brazil’s Minister of Labor, Luiz Marinho, says he did not like the decision by ...

    Brazil: Bovespa Down. Blame It on Petrobras.

    Brazilian stocks continued south, yesterday, again mirroring a decline in the U.S. market. Brazilian ...

    Heir to IBM PC Makes Brazil’s Footballer Ronaldinho Its Ambassador

    Lenovo Group Limited announced a cooperation with FC Barcelona and its superstar, Brazilian-born Ronaldo ...