Company news

On the morning of April 10, in Hanoi, the Vietnam National Chemical Group (Vinachem) held a working session with Kayan Group (Egypt) to discuss cooperation opportunities and connecting apatite ore supply sources for fertilizer production.

Attending the meeting on behalf of Vinachem were Mr. Phùng Quang Hiệp – Party Secretary and Chairman of the Members’ Council; Mr. Nguyễn Văn Luyện – Deputy General Director; representatives of specialized departments, and leaders of some member units. From Kayan Group, there were Mr. Hatem Elgamal – Chairman; Mr. Abhishek Wadekar – General Director; and Mr. Abdullah Elgamal – Business Director.

Kayan Group is a multi-industry industrial conglomerate operating widely across Egypt, with notable activities in international trade, port logistics, mining, construction materials, and chemicals. The group has built a closed value chain from extraction and processing to transportation and delivery; annually, it exports about 1 million tons of phosphate ore, 1.5 million tons of clinker, trades 200,000 tons of sulfuric acid, imports 800,000 tons of sulfur, and operates a large-scale bulk logistics system via specialized subsidiaries. With integrated mining and logistics capabilities, Kayan is one of the most reputable suppliers of phosphate and chemical raw materials in the Middle East–North Africa region, serving markets in India, China, Brazil, and Europe.

During the meeting, both parties had open and candid discussions on the demand and capability for supplying apatite ore from Egypt to Vinachem’s fertilizer plants. Vinachem representatives shared that the Group has surveyed many ore sources worldwide and found that Egyptian ore meets the requirements of current production technologies. Given the fluctuations in international raw material and transport costs, Vinachem wishes to establish direct cooperation at the Group level instead of small-scale transactions by member units, aiming to build an integrated policy regarding output, quality, transportation, and pricing, thereby improving business efficiency.

Vinachem projects an import demand of about 1.2 million tons of apatite ore in 2026, with potential for further increase in the following years. Kayan affirmed its supply capacity of up to 3 million tons per year, with a large export share, and can meet Vinachem’s demand without affecting its traditional markets. Both sides agreed to prioritize ore types with P₂O₅ content from 26–27%, suitable for Vinachem’s production technology, and emphasized that controlling transport costs is a key factor in determining product prices.

Based on the discussion, both sides agreed to move towards signing a framework agreement at the Group level. This will serve as the basis for defining cooperation details regarding expected volumes, technical requirements, transport principles, and coordination mechanisms between relevant units, with a foundation of long-term volume commitments enabling the partner to proactively plan extraction and logistics and to establish suitable pricing policies.

To initiate the partnership, the Vietnamese side proposed that initial shipments be carried out as soon as possible. The partner responded that they would coordinate with their specialized teams to provide feedback and arrange necessary conditions soon.

At the session, the two sides also discussed the potential to expand cooperation in the supply of sulfur and the possibility of bringing some of Vinachem’s industrial products, including tires, into the Egyptian market. The meeting concluded with a strong consensus on the direction of sustainable cooperation, based on trust, efficiency, and mutual benefit.