CAIRO: Representatives from Egyptian and Spanish companies announced plans for a $250 million industrial zone in a formal declaration of partnership ceremony on Tuesday.
Egypt’s Pyramids Industrial Parks and Spanish corporation Consorci de la Zona Franca de Barcelona will work together to establish an industrial zone in the Tenth of Ramadan City, which is to be occupied by Spanish companies and other European enterprises.
The planned zone, to be called Pyramids Zona Franca Egypt, will be a comprehensive business zone with over 96 facilities and space for factories, small and medium businesses, and office space. The area, which will cover 2 million square meters, will also provide logistical and residential services.
The zone is expected to generate over 20,000 jobs and bring in LE 1.4 billion in investments as the project progresses.
Though a memorandum of understanding on the project was signed in 2008, yesterday’s ceremony marks the official starting point of the project.
Minister of Trade and Industry Rachid Mohamed Rachid attended the event, which was hosted by the Ministry of Trade and Industry and the General Authority for Industrial Development.
The chairman of Pyramids Industrial Parks, Nehad Ragab, spoke about the significance of the new venture.
“The partnership we are celebrating today by and between PI Parks and El Consorci de la Zona Franca de Barcelona, a leading Spanish company whose history goes back to 1916, is aligned to Egypt s national strategic plan for industrial development and will target diverse and major sectors such as construction engineering, food processing, building material, chemicals, medical equipment and textiles, he said.
Representatives from Conscorci de la Zona Franca de Barcelona were also in attendance at the signing.
Ahmed Sultan, managing director of Pyramids Industrial Parks, said that the zone’s future structure is still in the planning phases.
“The financial crisis has impacted demand in Europe, so we are currently conducting market research there to find out which industries are in most demand. Using that information we will determine which companies to promote in the new zone, he said.
Sultan added that textiles, medical equipment and building material manufacturers would likely be some of the industries represented in the new zone.
The first factory on the project, ISKRAEMECO, began operations in February. ISKRAEMECO is a Slovenian manufacturer of devices for electronic energy measurement.
The new operation is the result of LE 120 million in investments, and is the first factory to be constructed under the Program for Industrial Zones Development.
The agreement to establish Pyramids Zona Franca Egypt is the latest move in a larger effort spearheaded by the Ministry of Trade and Industry to promote international trade and investment with diverse partners.
The zone, based in Egypt s 10th of Ramadan city, could generate 20,000 jobs, officials said.
