Standing 37 miles east of Cairo, gathering fine, sandy dust, are a dormant rerefinery and lubricant blending plant. Construction of the facilities finished four years ago, but they have yet to be operated, victims of political vagaries and financial decisions by would-be operator Misr Canada Co. and its owner, Egyptian Arab Trading Co.
Now a California businessman says he has bought into the facilities and intends to have them operating early next year.
Victor Noval, chairman of Noval International, announced Aug. 17 that he had purchased a majority stake in EATCO and that he planned to see it start up in approximately 6 months. Noval said he was attracted partly by the political changes taking place in Egypt.
This was a once-in-a-lifetime opportunity for Noval International to own an oil company, given the current economic and political climate of Egypt, he said in a written statement. Egypt is a beautiful country, and due to the many changes taking place there, is filled with great opportunities. I am pleased to begin this venture and have high aspirations for the companys future.
According to Noval, the rerefinery and blending plant occupy 560,000 square feet in an industrial park in Ramadan City, a new satellite of Cairo that offers tax breaks to investments. The rerefinery has capacity to make 25,000 metric tons of base stocks per year and will obtain feedstocks from local sources as well as imports. The blending plant has capacity of 20,000 t/y.
Novals representative said it will take $75 million to bring the plant and rerefinery online.
This appears to be Novals first venture into the lubricants industry, although the company was unable to confirm this. Victor Novals main business has been real estate, including interests in green properties, according to a web site posting news about him and his charitable foundation, the Victorino Noval Foundation.