These agreements are in furtherance of the memorandum of understanding and cooperation protocol agreement between the Egyptian government and International Power Group Egypt’s principal shareholders.

Louis Garcia, CFO of International Power Group Egypt, said: Egypt Rubber (ERL) will be constructing and operating a state-of-the-art tire recycling plant in Alexandria, Egypt, and LOL will be taking over from the Egyptian government operations of an existing waste oil recycling facility in Alexandria, Egypt.

ERL and LOL already have in place agreements for the supply of waste oil and used tires to their plants, as well as orders for all of the recycled lube oil and rubber they will be producing. International Power Group Egypt will receive a 5% royalty from both ERL and LOL for consulting and business development services.