Egypt is advancing construction of a $120mn methanol derivatives plant in Damietta with capacity to produce 140,000 tonnes of specialised chemicals annually, supplying domestic fertiliser, furniture, wood-products and construction industries. By; Middle East Observer StaffThe Egyptian Petrochemicals Holding Company (ECHEM) reviewed progress at the Suez Methanol Derivatives Company (SMD) project on August 10, focusing on remaining construction work, occupational health and safety and preparations for trial operations. The project is intended to substitute some imported industrial inputs while extracting greater value from petrochemical feedstocks already produced in Egypt. The Canadian methanol producer completed a 450-metre pipeline in 2025 connecting its neighbouring Damietta facility directly with the SMD plant. The company has estimated that the derivatives project could increase annual methanol sales by about 58,000 tonnes.