Carmel Olefins expansion leads to about $310m investment in Haifa

25-May-05

Soaring demand for propylene and ethylene has led Carmel Olefins to expand production at its Haifa plant. The expansion program is to cost about US$310 million. This Israeli company owned in equal shares by Oil Refineries and Petrochemical Enterprises is to issue a private placement of bonds to the tune of NIS 660 million in addition to bank financing for the purpose of this expansion. Carmel manufactures low-density polyethylene (LDPE) under the registered trade mark Ipethene, and polypropylene (PP) under the registered trade mark Capilene and various technical compounds. Carmel supplies 75% of all ethylene consumed in Israel and almost 50% of all propylene products, and has reported a net profit of NIS 100 million on sales of NIS 538 million