Investment cooperation between Egypt and the UAE to develop the aluminum industry

Since the end of last year, Egypt has been considering reviving plans to develop its government arm in the aluminum ore industry, in the city of Naga Hammadi, in the south of the country.

Establishment of a new factory

The development plans included the establishment of a new factory and the generation of renewable energy to supply all production lines with electricity generated from environmentally friendly sources. According to government statements to company officials, the injection of investments will be through participation in increasing the capital of the company listed on the Egyptian Stock Exchange.

New factory in Safaga

Egyptian Minister of Business Sector Mahmoud Esmat said in a press conference this week that the company aims to build a new factory near the Safaga seaport in the south of the country.

The minister said, the main objective of the development will be to increase the proceeds of exports, after there is a large export demand, following the changes brought about by the Russian-Ukrainian war, and the first to express interest in participating in the development operations was the Emirates Global Aluminum Company.

Partnership opportunities

The CEO of Emirates Global Aluminum Company, Abdel Nasser bin Kalban, visited the Egyptian Ministry of Business Sector in the middle of this month.

The two sides discussed partnership opportunities between Emirates International Aluminum Company and Misr Aluminum Company in establishing a new aluminum production plant to add production capacities and new products for export and meet the needs of the local market.

The Emirati Company is the largest Emirati industrial entity, outside the oil and gas sector, specifically in the production of premium aluminum, and its products reach many markets around the world, in light of the expansion strategy it is currently pursuing.

Attracting investments

The Egyptian government has taken many measures during the past period to encourage domestic investment and attract foreign direct investment, while providing unprecedented investment incentives and overcoming any obstacles facing investors.

This is in addition to the giant projects in infrastructure, roads and railways, which facilitated the possibility of establishing the new factory in many places, in light of the availability of energy and industry requirements.

Details of the potential partnership

The new investments will be directed to the construction of a new plant for the production of bauxite, the raw material for the production of aluminum, which is witnessing an increase in demand in the global markets. The government has already agreed to allocate land for the planned project in Safaga, provided that it depends on electricity generated from solar energy.

The Egyptian government will contribute to the project, part of the investment cost of the factory, in addition to the land needed for it, without specifying the size of the investments expected to be pumped by the government.