The Ministry of Petroleum announced Wednesday the establishment of the first Egyptian company to convert rice straw into medium-density wood panels. The company will be located in El-Beheira governorate at a cost of 210 million Euro.

Minister of Petroleum Tariq El-Mulla chaired the founding assembly of 'WOTECH' on Wednesday as part of the petroleum sector's contribution to support state efforts to reduce environmental pollution resulting from burning rice straw.

According to the ministerial statement, the company has a production capacity of 205,000 cubic metres per year based on 245,000 tons of rice straw as raw material.

The company is based on technology of the German firm 'Simple Camp,' while construction and installation will be handled by Petrojet company.

The project is the first of its kind in Africa and the Middle East and the second globally after the United States, the statement read.