CAIRO: Egypt s El Sewedy Cables, one of the biggest cable manufacturers in the Middle East, has bought an Egyptian firm with a 10-year tax exemption for power cable production for an undisclosed price, El Sewedy said on Monday.
The purchase of Al Wataniya, which has not begun production, includes a 47,000 square metre plot of land, a steel structure, and an administration building adjacent to Egytech Cables. Egytech is an El Sewedy subsidiary.
We believe that this was an excellent opportunity for El Sewedy Cables to be able to expand our production facilities of power cables in Egypt … whilst benefiting from the 10-year tax exemption, Chief Executive Ahmed El Sewedy said in a statement.
El Sewedy produces accessories used to manufacture mobile phones, power and irrigation cables, and other electronic applications. The firm posted a net profit of 502 million Egyptian pounds ($88.2 million) for 2006 in March, up 52 percent from a year earlier. Shares in El Sewedy were 0.4 percent lower at 54.71 pounds at 0838 GMT.
