Japanese company Sumitomo Electric Industries will invest in Egypt through establishing a factory in 6th of October City with a total investment of EGP 200m ($10 million). The factory will specialize in producing wire cables systems, according to a statement from the Ministry of Industry and Trade.
The factory would produce electric braids, as part of the company’s plans to expand its investments in the Egyptian market.
The statement said that the factory will create almost 1,000 jobs, and will start operating within three months.
Minister of Industry and Trade Tarek Kabil said during a meeting with COO of Sumitomo Europe Kevin Phillips that the company’s decision to invest in Egypt was a fast, positive reaction to the ministry’s commitment to the successful governmental program of supporting exports announced in April. The program provides 50% more subsidies for any company that increases its exports by 25% in the engineering, chemical, food, and textile industries.
Kabil said that the subsidies should be provided to the company within 10 days after the company provides its order statement to the Export Development Fund.
The program is aimed at increasing the competitiveness of Egyptian products, attracting investors, and targeting new markets, he noted.
He added in the statement that the company’s new factory is the second one in Egypt, adding that the first factory faced problems which caused it to shut down. However, it was easy to restart the old factory’s production with a new investor.
On the other hand, Phillips said that the reforms Egypt has implemented are the best motivation for new investments from the biggest companies in the world. He added that the company must benefit from exporting through the Suez Canal area, because it has a lot of companies in Asia.
The statement shows that the company’s exports increased by 89% worth of €26.1m from 1 April to 30 September, compared to €13.8m in the same period last year.
Daily News Egypt