China, Saudi JV to build aluminium plant in Egyptby Jochebed Menon on Jan 23, 2017
Egypt is setting up a new aluminium factory in Ataqa Industrial Zone, north of the Gulf of Suez.
Tarek Kabil, Egypt’s minister of industry and trade, announced that a major Chinese company will establish the new factory to manufacture aluminium plates that cover buildings facades.
The project will be a joint venture between Egypt, Saudi, and China with a capital of $100m.
The factory’s production would meet a large portion of the local market’s needs and a portion of its production would be allocated for exporting.
Approximately 1.6ha have been allocated in the industrial zone in Ataqa to start the factory’s construction, Daily News Egypt reported, citing the minister.
Kabil said that actual operations will take place within nine months from the start of construction. The new factory will include four production lines in addition to a line for paint.
According to Kabil, the Chinese company has chosen to work in the Egyptian market to benefit from the competitive advantages, such as the large market which exceeds 90 million consumers and the ability to benefit from free trade agreements signed with a large number of countries and major economic blocs in the world, which enable the factories’ products to reach more than 1.6 billion consumers at competitive prices.
He said that the Egyptian partner in this project is Well Bond company, an Egyptian-Saudi investment company that is currently operating in the Egyptian market in the free zone in Suez and is producing 60ha annually, about 8-9% of the Egyptian market’s needs.
The minister mentioned the importance of providing raw material for that industry from the factory producing aluminium in Naga Hammadi, and that Well Bond factory is currently importing the needed raw materials from China and Bahrain.