Egyptian Industrial & Manufacturing News

[xAbd0o]

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[xAbd0o]

Arafa of Egypt to Triple Luxury-Suit Production on China Demand, CEO Says

Al Arafa Investments and Consulting, Egypt’s oldest publicly traded textile company, plans to triple production of high-end suits because it sees growing demand for such products as Chinese shoppers buy more luxury products.

“I was in Hong Kong last week and I found that Hong Kong opened 3,000 square meters of Louis Vuitton,” Alaa Arafa, 52, chairman and chief executive of Cairo-based Arafa said in an interview on Aug. 3. “In spite of the 3,000 square meter shop, the Chinese are in queues outside the door, still waiting. This is a very important signal.”

China overtook the U.S. as the second-biggest luxury market last year, after Japan, with sales of $9.4 billion, or 27.5 percent of the global share, according to the Chinese Academy of Social Sciences. Sales in China, the world’s most populous nation, will reach $14.6 billion by 2015, it said.

Al Arafa, which provides suits to stores such as Debenhams, Banana Republic, Zara and Massimo Dutti, is reorganizing to focus more on the luxury suit market. It plans to boost its production of high-end suits from 250 suits per day to 750 per day in three years, Arafa, who was trained as a doctor before taking over the family business, said.

Egypt’s proximity to Europe, and especially Italy, will allow Arafa to produce luxury suits at more competitive prices because of cheaper labour in the Arab world’s most populous country. An Italian entrepreneur has teamed up with Egypt to start a 60 hour ferry service between Alexandria and Venice, which will allow access to the Italian market, Arafa said.

“In our business, when you want to target luxury goods, you target Italy, because you distribute from Italy,” he said.

The company is planning to start a shirt factory next year with a capacity of 1 million shirts per year. It will contribute $50 million to the business annually when it reaches capacity of 3 million per year, Arafa said.

“It will add value because there are no marketing costs,” he said. “We are selling to the same existing clients. It’s very logical to sell fine cotton shirts from Egypt because of Egyptian cotton.”

http://www.bloomberg.com/news/2010-0...-ceo-says.html

Lovely, good to see that our Cotton is manufactured locally. this could mean double of triple the revenue plus creating work places which is good.

[xAbd0o]

Al Nouran Holdings Gets Approval to Build 1-Million-Ton Egypt Sugar Plant

Al Nouran Holdings, an Egyptian sugar trader, won approval from Egypt’s Industrial Development Authority to set up a 1-million-ton sugar plant in the northeast of the country, the company’s Chief Executive Officer said.

“We have obtained all the licenses,” Ashraf Mahmoud said. “Now, we’re just waiting to finalize the loan.”

Construction of the hybrid beet-sugar mill and raw sugar refinery will begin by November this year and production at the facility is due to start in 2013, Mahmoud, who’s also the company’s chairman, said in an interview yesterday.

The estimated cost of the plant is 1.9 billion Egyptian pounds ($334.5 million), of which 65 percent will come from a syndicated loan led by National Societe Generale Bank SAE and 35 percent through self-financing, Mahmoud said.

The plant will use beet for almost half of its output, with 500,000 metric tons of sugar capacity in 2013, and 500,000 of capacity added in 2015, Mahmoud said.

“We believe that the issue is not going to be the industry but it’s going to be the availability of feedstock, which is the beet,” he said.

The Cairo-based company is currently leasing 7,000 feddans (7,266 acres) of land in the Sharqia province to grow beet and is working on increasing the productivity level to meet growing demand in Egypt, Mahmoud added.

Sugar consumption in Egypt is around 2.8 million tons, with 1 million tons produced by cane sugar and 800,000 tons by beet, and around 1 million tons imported, Mahmoud said. He expects sugar demand to increase by 60,000 tons a year.

The company is also considering exporting some of its planned plant’s output to benefit from a deficit of 4 million tons of sugar in the Middle East and North Africa region, Mahmoud said.

“There is huge potential for export,” he said. “Egypt has a freight advantage and free trade agreements advantage.”

The company is planning to sell between 20 percent and 30 percent to the public in 2015 and list the shares on the Egyptian Exchange, Mahmoud added.

http://www.bloomberg.com/news/2010-0...gar-plant.html

Well I am not sure if local sugar is going to be white enough for international standards for exporting. also only 20-30 percent to the public that sound very strange. will that fulfil the public needs?

[egypt69]

Marico launches hair product line in Egypt

Marico, an Indian FMCG company in the beauty and wellness arena, launched their hair care range Parachute in Egypt.

"This is a very important launch and a cornerstone that marks our expansion within the Egyptian market," said Satish Veerappa, Marico's head of sales and marketing.

Parachute, premium grade coconut oil, helps nourish and moisturize the hair. "Parachute gives the root of the hair the protein it requires and strengthens it," Veerappa added.

http://www.thedailynewsegypt.com/ind...d=1&Itemid=183

Sharp to outsource TV production to Egypt: report

Sharp Corp. will outsource manufacturing of its LCD televisions to Egypt and the Middle East in a bid to increase foreign sales, according to a report published Wednesday.

The Nikkei business daily reported that Sharp will contract with local appliance-makers to assemble roughly 90,000 televisions per year, and sell the TVs in the Middle East and North Africa.

Sharp opened a sales office in Egypt in the spring, according to the report.

http://www.thedailynewsegypt.com/ind...d=1&Itemid=183

[MASRI]

Egypt Attracting Oil Companies With Massive Reserves And Improved Compensation

Although a recent U.S. government survey outlines the rich potential of offshore Egypt's natural gas reserves, the North African country is yet to offer attractive investment terms to companies carrying out broad exploration in deep waters, according to energy analyst Samuel Ciszuk.

“It’s a completely new technology field,” argued Ciszuk, a senior energy analyst for the Middle East and North Africa at IHS Global Insight in London. “It requires a bit of a new approach.”

The U.S. Geological Survey , part of the Interior Department, found that the Nile Delta Basin Province, which encompasses about 250,000 square kilometers of the eastern Mediterranean area, boasts an estimated 223 trillion cubic feet of “undiscovered, technically recoverable natural gas.” These kinds of reservoirs may serve as a “bridging fuel” as the world moves toward a “carbon-constrained global economy,” the study indicates.

When it comes to gas, Egypt, a member of the Gas Exporting Countries Forum, has become an increasingly deepwater play in the Mediterranean and an exporter on par with Europe, Ciszuk told OilPrice.com. The country's efforts include liquefied natural gas projects and a pipeline extending toward Jordan and Syria , he said, adding that it will eventually include Turkey and potentially Europe.

Oil production is still significant for Egypt -- the survey estimated about 1.7 billion barrels of undiscovered oil -- but “exports are almost non-existent,” Ciszuk added.

Siphoning out the energy windfall that the U.S. government appraised last month remains questionable, since assessing the geological potential of the area and actually drilling are “two very different things,” he acknowledged.

Although the Egyptian government can recover these resources “to some extent,” he said, there are financial risks linked to deepwater drilling and also dangers similar to “what happened in the Gulf of Mexico ” when an oil rig exploded in April.

Egypt's financial terms -- while “very competitive” -- have been geared toward prospecting and production in shallow waters, a model that has been “slowing down development” over the last few years in other areas, he said.

Under the Egyptian model, one-third of gas reserves are destined for domestic markets, one-third can be exported and the balance must be kept for future generations, he explained. How much the government actually pays firms for the third of production going to the local market is “very, very crucial,” Ciszuk said. These companies “need to get a decent price for the remaining third in order not to spoil the projects, especially when we talk about deepwater and the high cost involved.”

The main players in the offshore Mediterranean arena include British Gas, BP, ENI and RWE, Ciszuk noted.

Cairo , which has realized the downside of its traditional approach, is in the midst of negotiating better compensation for companies to make deepwater production viable, he said. The Egyptian government offered BP improved terms for offshore development in the Nile Delta, wrote Ciszuk last month in a research note. He described the move as a “groundbreaking deal" with Egypt, giving it full production rights in its Mediterranean North Alexandria block and guaranteeing it a "significantly higher oil-indexed price for the gas produced for the government.”

For several years, Egypt has enacted new laws to attract international, regional and domestic investments, according to its government Website. The government has allowed flexibility in choosing the investment field, in transferring projects, and in product price and profits determination, the site states. The government notes that it has also nixed capital limits.

After the survey was issued last month, Refat Khafagy, the Egyptian oil ministry undersecretary, said the estimated natural gas can be exploited using advanced technologies, according to media reports. He did not offer details.

While the study's lead author, geologist Mark Kirschbaum, does not know the specific costs of recovering the resources, he conceded that “a lot of rigs” are needed to “push the limits of what we assessed.” The survey accounts for natural gas that can be recovered technically, “no matter how deep the water, no matter how thick the salt,” Kirschbaum told OilPrice.com.

“I just got an e-mail from a guy from British Gas and he wanted to know pretty much the same questions” regarding the expense associated with drawing up the gas, Kirschbaum said. The company “see[s] our number, but then they realize that a lot of that stuff isn’t on their radar screen because it’s not economic in their terms,” he noted.

British Gas has interests in the Nile Delta, specifically in the Rosetta and West Delta Deep Marine Concessions, and has operated in Egypt for about 20 years, a company spokesman said. He declined to comment on the U.S. government study.

Kirschbaum described the basin as having a “fairly immature” production history similar in scope to the Niger Delta, which has been much more actively explored and is more of an oil and gas region. The Nile Delta was probably not developed earlier because it is mainly a gas province, he added, and it was not economical to produce gas until a few decades ago.

http://www.nuwireinvestor.com/articl...ion-55480.aspx

[xAbd0o]

I was happy when they said

Oil production is still significant for Egypt -- the survey estimated about 1.7 billion barrels of undiscovered oil -- but “exports are almost non-existent,” Ciszuk added.

I hope we don't even export any oil. I hope they consider exporting renewable energy more. USA and EU do have oil in there soil. but they never really dig up to export it and hardly use it. do you even know why? because eventually oil will go and as it disappear it's price going to double they will need future reserve for there countries and a bit for exports which going to be 10x the price if not more. I hope that how our government is thinking. we need our oil for the future. if we start exporting like the Gulf states we might end up like Iraq if we want to stop or control the oil.

[egypt69]

El Sewedy Cables to increase output for Europe

Europe is company’s leading export market


Egypt’s El-Sewedy Cables has said it is increasing output this year and the next on the back of growing demand for its products in Europe, the Middle Eastern and Africa, Reuters has reported. The company plans to capture 2-3 per cent of Europe’s market over the next three years. “Europe is our top export market, and it is generally one of the biggest consumers of cables used for maintenance and replacements,” Ahmed Homossani, investor relations director at El-Sewedy, told the news service.

http://www.meed.com/sectors/industry...072342.article

[egypt69]

El-Sewedy Cables to open cable manufacturing plant in Libya by end 2011

Company will invest $50m in the plant

Ahmed Homossani, investor relations director at Egypt’s El-Sewedy Cables has said the company plans to set up a cable manufacturing plant in Libya by the end of 2011 with investments of $50m, Reuters has reported. “The plant will generate revenues of 20 per cent (of the investment)” after it begins operation, Homossani told the news service.

Source: meed

[egypt69]

JV to oversee Toyota SUV assembly in Egypt

Toyota’s "Fortuner" SUVs will be assembled in Egypt, with a planned annual output of approximately 3,000 vehicles, beginning early 2012, according to a statement.

Toyota Motor Corporation (TMC), Toyota Tsusho Corporation (Toyota Tsusho) and Toyota Egypt S.A.E. (Toyota Egypt) — TMC's independent vehicle distributor in Egypt — will establish a company to oversee the assembly of Toyota-brand vehicles locally, using parts mostly made in Thailand, a statement on MarketWatch read.

TMC, Toyota Tsusho and Toyota Egypt plan to conclude a joint-venture agreement by mid-November, and the company will be formally established in mid-December.

The company will also perform quality control, supply and demand management, and logistics management.

TMC started exporting to and selling vehicles in Egypt in 1979 though Toyota Egypt; it sold approximately 15,000 vehicles in 2009.

http://www.thedailynewsegypt.com/tra...-in-egypt.html

[egypt69]

Toshiba to spend about US$59 million on Egypt TV plant

Tokyo--Japan's Toshiba Corporation said on Thursday it would spend about 5 billion yen (US$59 million) on setting up a liquid-crystal display TV plant in Egypt as a joint venture with El Araby.

The plant is expected to start production in March 2011, with an initial annual capacity of 600,000 units, rising to two million units in 2013, the company said in a news release.

http://www.almasryalyoum.com/en/news...egypt-tv-plant

[Montrealers]

Egypt, Syria to launch negotiations over joint customs union

Egyptian Trade and Industry Minister Rachid Mohamed Rachid on Thursday announced the formation of a committee mandated with conducting negotiations with Syria over the proposed establishment of a joint customs union.

Rachid agreed with Syrian Minister of Economy and Trade Lamia Assi that a customs union between the two countries, together with the Gulf states' joint customs union, could eventually become the hub of a pan-Arab customs union--providing a solid foundation for the eventual emergence of a common Arab market.

Rachid also announced that Egypt was stepping up its investments in the Syrian tourism sector, and that a joint Egyptian-Syrian bank would soon be established in Damascus--with a capital of some US$220--in order to facilitate the financing of joint trade and investment projects.

Assi was accompanied on his official visit to Cairo by the heads of 40 leading Syrian companies working in the textiles, food, tourism, construction and trade sectors.

Translated from the Arabic Edition.

http://www.almasryalyoum.com/en/news...-customs-union

[xAbd0o]

Egypt's clothing industry starting to bloom

Over the past five years Egypt has cemented its position as a fashion hub for European and American high street brands, with average annual garment exports earning the country US$2bn. Yet domestic labels are generally not exported and high-end clothing manufacturing is still very niche.

"Fashion manufacturing is still rather new to Egypt, as this requires high skills and a fast turnaround time, but the sector has developed a lot in garment manufacturing since 2005," explains Dr Hala Hashem, chief executive officer of Al Arafa for Investment in Garments Manufacturing.

The company, headquartered in Nasr City, Cairo, exports to Zara, JC Penny, Macy's, Banana Republic and Gap, while in men's formal wear sells to Debenhams, House of Fraser, Massimo Dutti, Ben Sherman, Racing Green and the Valentino Fashion Group.

"We are not driven as a society by fashion, unlike say Lebanon, and we don't have a heritage of strong local brands," she adds.

Egypt is the European Union's (EU) sixteenth largest supplier of clothing and is becoming a more important export market for Egyptian manufacturers due to the downturn in orders from the United States, a long-time trade partner due to preferential trade agreements.

Exports are currently split 60% towards Europe and 40% for the US market, down from a 50:50 split before the financial crisis, according to Bassem Sultan, CEO of Alexandria-based Dyetex, and treasurer of the International Textile Manufacturers Federation (ITMF). Exports are predominantly low to medium-priced garments, with few companies manufacturing high-end fashion items.

However, Sultan believes the sector has potential over the next few years to manufacture high-end garments. "Already some manufacturers have started producing high-quality fabric shirts for Italian and Swiss companies, and I think the Egyptian market for export is growing," he says.

Rising orders fuel optimism
Egypt has gained orders recently due to rising domestic demand from the Far East, which has reduced capacities for export to Europe.

Combine this with the benefit of low labour costs and geographic proximity to the European market, and optimism for growth is strong.

Another sign is the launch of a boat carrying product between Egypt and Venice. "We have not yet fully utilised its benefits, but it has reduced the logistics time, especially with Italy, and the sector is now at a similar stage to Romania six years ago," explains Dr Hashem.

Indicative of the sector's potential growth strength is the news that retailers Zara and Tesco will open sourcing offices in the country next year. "It gives Egypt positive vibes that they are coming here," says Dr Hashem.

Egypt's domestic clothing manufacturing sector, estimated to be worth US$1.6bn according to Sultan, is not however involved in the production of clothes sold by foreign retailers in the country.

"We manufacture for Nautica, Dolce & Gabbana, and Calvin Klein, but it is only for export," says Sultan, adding that Egypt does not produce a wide enough selection of items to cover a brand's full range.

Retail market opening up
Since 2005, international retailers such as Zara, Paul & Shark, Lacoste and Benetton have entered the market as malls opened in the capital Cairo, while next year Marks & Spencer will open two stores.

With Egypt having a low GDP (gross domestic product) per capita of US$5,700 a year, only around 5-7% of the population can afford higher cost clothing, explains Sultan.

Retailers are nonetheless faring fairly well though, selling to affluent Egyptians and tourists from the Gulf.

"The retailers are still testing the Egyptian market but they underestimated it," says Dr Hashem. "They are not offering the same amount of items as I see in Europe, which I think is a mistake.

"I think in due time the big retailers will understand how things work in Egypt. It also depends on the model, as the most successful has been Benetton, as the clothes are manufactured and imported from Syria, and they understand the Egyptian market," she notes.

One of the few local brands with export potential is Al Arafa's label 'Concrete', which it bought ten years ago.

In the Egyptian market for 20 years as a mid-to-high end clothing store for men, with Italian style fabrics and designs similar to American label Gant, Concrete has 45 outlets in Egypt.

Dr Hashem says her company plans to export Concrete to the Gulf, Turkey and Europe. "This is not a common practice in Egypt as it is not easy to go with your own brand to where competition is, but Concrete is one of the best known names in the country."

http://www.just-style.com/analysis/e..._id109855.aspx

I'm shocked at the number and names of the brands O_O

[the_egyptian]

The good thing would be to produce the final product that people look for and firms compete about, not just exporting the raw material. We must create brand names.

[xAbd0o]

We don't have a cloth manufacturing industry in Egypt as the article stated, so really for now international brands like these a good for us, now we can train our workforce on those high standard brands then toward the end it talked about local brands. which is the next step and some of them starting to ring a bell around each corner in Egypt and the Arab the world then internationally next.

so It's a good start IMO.

[egypt69]

Egyptian exports to carry Tahrir Square emblem

Egypt is considering stamping its exports with the Egyptian flag or an emblem representing Cairo's Tahrir Square in a bid to promote its products in foreign markets, Minister of Industry and Foreign Trade Samir al-Sayyed said.

A central gathering point during the 18-day pro-democracy uprising that ended with the ouster of former President Hosni Mubarak, Tahrir Square was at the forefront of world media coverage.

At a press conference on Monday, al-Sayyed said the Egyptian flag and Tahrir Square have recently become some of the world’s most famous symbols. He added that a local campaign will be launched to promote domestic products that relies on the spirit of the revolution to solicit a love for Egypt.

Al-Sayyed added that his ministry has prepared a stimulus package that will invigorate industrial production, broaden the manufacturing base--especially on the level of small and medium-sized industries--and offset a shortfall in exports.

The minister added that the package aims at reinforcing investors' confidence in Egypt's economy as they kick off industrial activities from this year through 2012.

Al-Sayyed revealed that his ministry is reconsidering mechanisms governing the allocation of lands for industrial facilities in a way that provides more space for young industrialists. He added that the new measures will ensure the allocations are made within 48 hours from submitting an application to the Industrial Development Authority.

The minister added that the government is considering postponing installments due by factories in order to provide them with capital liquidity. He also revealed that more attention will be given to new exporters, who he said will enjoy a program for improving their products and qualifying them to obtain quality certificates.

http://www.almasryalyoum.com/en/node/353799

[Azmat]

Danone Egypt to launch milk farm in 2011

CAIRO: Danone Egypt, which has been producing yogurt in the market since 2008, said it will inaugurate its first milk farm in the world this year in Egypt, according to a statement.

Floris Wissling, Danon CEO, said the company has “non-stop investments in Egypt, as Danone invested LE 450 million in 2006 in the field of yogurt production and distribution.”

Danone Egypt, which does not export any of its products, all of which go to domestic consumption, said it “possesses one of the strongest distribution networks in Egypt which enable it to serve rural areas across the country which previously had no access to manufactured yogurt.”

Danone’s currently produces Mixy, Activia, Danette and Disney yogurts.

Danone Egypt had family 355 employees in 2006, which grew to 730 employees in 2011.

Source: http://www.thedailynewsegypt.com/ind...m-in-2011.html

[xAbd0o]

Egypt productivity down 45 per cent: industry chairman

Egypt's rate of industrial production has fallen 45 per cent since the beginning of the revolution, says the chairman of the Egyptian Federation of Industries, Galal El-Zorba.

Speaking at a conference organised by the General Union of Chambers of Commerce and Egypt's ruling military council, El-Zorba stressed the need to make quick decisions to increase exports and domestic production.



Also in attendance was Ahmed Wakeel, president of the Federation of Chambers of Commerce, who stressed the importance of Egypt's private sector, saying it contributed 65 per cent to the country's GDP.



Employees in the private sector represent 40 per cent of the Egyptian people, added Wakeel, making them a key factor in regaining economic security and creating an attractive climate for investors.

http://english.ahram.org.eg/NewsCont...y-chairma.aspx

awful! I understand it's normal after the revolution but still people need to take this into consideration.

[xAbd0o]

Centamin Egypt produces 67 percent more gold in Q3 compared to last year

Centamin Egypt (LON:CEY) produced 67 percent more gold in Q3 this year from its flagship Sukari Gold mine than in the corresponding quarter last year.

The firm remains on track to reach its target of producing 200,000 - 210,000 ounces of the yellow metal from the mine at a cash cost of around US$550 per ounce in 2011, the firm said today.

Total gold production for the quarter to September 30 was 50,539 ounces - 67 percent more than in 2010, and a 5 percent increase on Q2 this year.

This was underpinned by a record quarterly throughput at the Sukari process plant of 964kt as the ramp-up to higher production rates moved to after the "Stage 3" commissioning, said Centamin.

Open pit and underground production rates returned to budgeted production rates with the resumption of regular delivery and issuing of blasting products for the mine in late July, it added.

The firm's chairman Josef El-Raghy said: "The company is pleased with the return to normal operations, the rapidly improving performance of the process plant and the consistent development and maturing of the underground operation, which positions Sukari well for a strong and consistent performance in the future."

The Sukari gold mine is in the eastern desert of Egypt around 25km from the Red Sea coast. Gold production there began in June 2009 making Sukari the first modern mine in Egypt.

Centamin will post its results for the third quarter on October 31 this year.

http://www.proactiveinvestors.co.uk/...ear-34196.html

[Azmat]

I guess the Egyptian Mineral Resources Authority are doing what they promised.

[eskandarany]

210 million USD iron plant at Ain Sokhna