Summary of the
Chemical Leasing Signing Ceremony
15th January, 2007
10:30-11:30 am
Ministry of Trade and Industry, Cairo
Report prepared by
Eng. Ali Abo Sena
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Summary
1- Introduction ....................................................................................................................... 3
2- Signing Ceremony ............................................................................................................. 4
A. Presentation of ENCPC Activities .................................................................................. 4
B. Chemical Leasing Presentation ..................................................................................... 4
Chemical Leasing Project on Electrostatic powder coating (Akzo Nobel and ABB) ........ 4
Chemical Leasing Project on Cleaning with Hydrocarbon Solvent (GM Egypt and Dr.
Badawi Chemical Work) ................................................................................................ 5
C. Signing of Chemical Leasing Contracts ......................................................................... 5
Chemical Leasing contract between Akzo Nobel and ABB ARAB .................................. 5
Chemical Leasing Contract between Dr. Badawi Chemical Work and GM Egypt ........... 5
3 Discussion and Comments on the Chemical Leasing Presentation .................................... 6
A. Minister’s comment ....................................................................................................... 6
B. Comment of the Steering committee representative ...................................................... 7
Annex A: List of Participants .................................................................................................. 8
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1- Introduction
The Chemical Leasing project in Egypt is implemented by UNIDO in close cooperation with
the Egypt National Cleaner Production Center (ENCPC) which is affiliated to the Egyptian
Ministry of Trade and Industry (MTI).
In this context, chemical leasing projects between the companies ABB ARAB and Akzo
Nobel Powder Coatings on electrostatic powder coating and between General Motors Egypt
and Dr. Badawi Chemical Work on cleaning with hydrocarbon solvent were implemented.
First, the current situation was evaluated, then the process optimization requirements were
defined and implemented and a cost benefit analysis for the project was carried out. As a
next step, the chemical leasing business model was designed and put in place and, finally,
the chemical leasing contracts were drawn up.
The successful implementation of these projects attracted the attention of the MTI.
Therefore, ENCPC organized a signing ceremony for the two Chemical Leasing contracts on
Monday, January 15th, 2007 in the presence of HE Rashid Mohamed Rashid, the Minister of
Trade and Industry, at the Ministry premises. The signing ceremony was attended by the
general managers of the participating companies, members of the ENCPC steering
committee, the UNIDO country representative and media representatives. It was opened by
HE the Minister of Trade and Industry and moderated by Dr. Mohamed Hany Barakat, the
First Undersecretary from the Ministry of Trade & Industry and Head of the Technological
Development Sector.
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2- Signing Ceremony
A. Presentation of ENCPC Activities
During the chemical leasing signing ceremony, which was held at the Minister’s office at the
Ministry of Trade and Industry (MTI), two presentations were given. The first presented an
overview of the activities of the Egypt National Cleaner Production Center (ENCPC) and the
second dealt with the ongoing cleaner production project on the recycling of slag and dust
implemented by the company El Ezz Steel & Rebars.
B. Chemical Leasing Presentation
During the ceremony, the concept of chemical leasing was presented as a tool for
sustainable chemicals management. This was followed by two presentations on success
stories of the implementation of chemical leasing projects, the first focusing on electrostatic
powder coating, the second on cleaning with hydrocarbon solvent. The two presentations
were given by the participating companies (Akzo Nobel Powder Coatings & ABB ARAB and
Dr. Badawi Chemical Work & General Motors Egypt). The presentations elaborated the
situation before and after chemical leasing and pointed out the benefits obtained by the
implementation of the chemical leasing business model. These benefits were presented as
economical and environmental benefits. The achieved benefits of the chemical leasing
projects can be summarized for each case as follows:
Chemical Leasing Project on Electrostatic powder coating (Akzo Nobel
and ABB)
Economical Benefits:

Reduction in powder loss from 12% to 4-5%

Savings in costs of powder coating process per m2

Forecast of direct savings are around US$ 68 000 per year

Process optimization and more efficient process (1kg of product for 6 m 2 and
reduction in maintenance cost)

Better quality of the final product

Less liability

Zero waste

Ensuring long term business relationship
Environmental Benefits:

Compliance with environmental regulations related to waste management and
workplace environment

Enhancement of supply chain management and other environmental management
systems
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Chemical Leasing Project on Cleaning with Hydrocarbon Solvent (GM
Egypt and Dr. Badawi Chemical Work)
Economical Benefits:

Cost reduction by 15% (saving of raw material by recycling)

More efficient cleaning process with hydrocarbon solvent and less VOCs

Less liability

Ensuring long term business relationship
Environmental Benefits:

Recycling of solvent waste and no dumping

Better hazardous waste management in accordance with local environmental
regulations and international environmental corporate policies
C. Signing of Chemical Leasing Contracts
Following the presentations, the chemical leasing contracts between the participating
companies and ENCPC as an independent expertise body were signed in the presence of
HE the Minister of Trade and Industry. The experts from the ENCPC will monitor the
implementation of the contracts, which can be summarized as follows:
Chemical Leasing contract between Akzo Nobel and ABB ARAB

Process: electrostatic powder coating

Basis of payment for ChL service : EGP per painted m2

Duration: one year contract (renewable)

Independent expertise body: Egypt National Cleaner Production Center (ENCPC)
Chemical Leasing Contract between Dr. Badawi Chemical Work and GM
Egypt

Process: cleaning with hydrocarbon solvent

Basis of payment for ChL service: EGP per produced car

Independent expertise body: Egypt National Cleaner Production Center (ENCPC)

Duration: 2.5 years contract (including first six months for fixation of an adequate
price of ChL service per car)

Possibility of involving six other automotive companies into the project
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Signing of the contracts
3 Discussion and Comments on the Chemical Leasing
Presentation
A. Minister’s comment
HE Rashid Mohamed Rashid commented specifically on the chemical leasing concept and
expressed his great interest and full support for the further development of the concept in
other industrial sectors. Following this, HE raised the question on how the improvements of
the process efficiency can be achieved by chemical leasing while the used chemicals are
almost the same material. The question was answered by the companies and followed by
more clarifications by Eng. Ali Abo Sena who pointed out that higher process efficiency is the
result of process optimizations implemented in both the supplier and user companies. Taking
the chemical leasing project on electrostatic powder coating as an example, he showed that
the higher process efficiency was achieved by process optimization at Akzo Nobel
(modification of the powder formula to be adapted to the powder coating line at ABB) while
operation parameters and standard measures of the powder coating line were fixed for ABB.
These explanations were confirmed by the representatives of Akzo Nobel and ABB.
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B. Comment of the Steering committee representative
The representative and chairman of the Detergents Chamber (member of the ENCPC
steering committee), Mr. Abdel Shafie, emphasized the importance of the chemical leasing
concept and expressed his conviction that there is a huge potential for its application in the
detergents industry. Mr. Abdel Shafie added that more economical and environmental
benefits could be expected from the implementation of such innovative business models in
other industrial sectors. The steering committee members participating in the meeting
appreciated the ChL concept and asked for more pilot projects in other sectors.
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Annex A: List of Participants
Name
Function
HE Rashid Mohamed Rashid
Minister of Trade and Industry
Dr. Mohamed Hany Barakat
First Undersecretary, Ministry of Trade & Industry
Eng. Bassem Youseif
President, ABB Egypt
Eng. Ali Youseif
Managing Director, ABB ARAB
Eng. Atef Darwish
Painting shops Manager, ABB ARAB
Eng. Hanni Radwan
General Manager, Akzo Nobel for Powder Coatings
Mr. Frans Van Rijin
Counselor, Head of Economic Affairs & Development,
The Royal Netherlands Embassy
Mr. Leon Queizl
European Business Manager, Akzo Nobel HQ
Eng. Ashraf El Wassify
Deputy of General Manager, Akzo Nobel for Powder
Coatings
Mr. Don Butler
Chairman, General Motors Egypt
Eng. Ali Hassan
Painting shop and environment Manager, General
Motors Egypt
Eng. Mohamed Badawi
General Manager, Dr. Badawi Chemical Work
Mr. Basem Soltan
Member of the Board of Textile Chamber – FEI
(ENCPC steering committee member)
Eng. Mohamed Fekri Abdel Shafie
Chairman of Detergents Division – Chemical
Chamber – FEI (ENCPC steering committee member)
Eng. Yousri Tinawey
General Director of Food Chamber – FEI (ENCPC
steering committee member)
Mr. Paul Makin
UNIDO Representative (ENCPC steering committee
member)
Mr. Rodolf Lukavsky
Commercial Counsellor, Austrian Embassy (ENCPC
steering committee member )
Mr. Salah Abdel Hay - IT
Engineering Chamber – FEI (ENCPC steering
committee member)
Eng. Mohamed Abu El Leil
Director, El Ezz Steel & Rebars Factory
Eng. Hanan El Hadary
Director of Egypt National Cleaner Production Center
Eng. Ali Abo Sena
Chemical Leasing Project Coordinator
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