Daily News Egypt

XD-EGEMAC establishes four new factories, increasing investments up to $100m - Daily News Egypt

Advertising Area




Advertising Area



XD-EGEMAC establishes four new factories, increasing investments up to $100m

Company plans to export to Middle East, Africa, Gulf countries, says sales manager


XD-EGEMAC company, affiliated to EGMAC company, plans to increase their current investments in Egypt from $68m to $100m, according to the sales manager at XD-EGEMAC, Mossad Ibrahim.

Ibrahim noted that the new investments are expected to be injected by the end of 2019, adding that implementing the plan will increase the company’s factories to six, compared to the current two factories, and expand the company’s field of work.

The company already has 270,000 sqkm in land area, and it has built its current two factories on 135,000 sqkm, while the other 135,000 sqkm will be allocated for the new four factories, Ibrahim explained.

He added that the company’s sales revenues are expected to reach EGP 36bn for 2018, noting that the first new factory will produce dry transformers, and the second will be for surge arresters, while the third earmarked for energy cluster banks, and the fourth is for electrical insulators.

Moreover, Ibrahim affirmed that his company will gradually establish the new factories, however it has not yet been decided which one will be the first to be built. Nevertheless, Ibrahim noted that the company is in the process of preparing the infrastructure and the construction is expected to begin in early 2019.

The construction process is expected to be finished by 2021, and Ibrahim noted, “our expansion plan was concluded following a study conducted on construction prospects, while sales’ expectations cannot be revealed now.”

Meanwhile, he said that the company’s expansion plans take into consideration the government’s plans to increase its investments in the electricity sector, especially in the distribution field.

On 3 September, the minister of planning, follow-up and administrative reform said that the electricity sector targets investments worth about EGP 133.1bn in fiscal year 2018/19, according to local media reports.

“We have current contracts worth EGP 2.6bn over the past period of 2018, while the total contracts of 2018 are expected to reach EGP 3.5bn,” said Ibrahim, adding, “we have contracts on hand to be signed during this year and next year worth over EGP 6bn.”

The XD-EGEMAC alliance won the North Hurghada transformer station tender whilst competing with 10 other companies, according to the company’s chief executive officer’s previous announcement, Medhat Ramadan, adding that the alliance includes EGEMAC, ABB, four Chinese companies, and an Indian company. He added that the cost of the project is estimated at $18m.

The Egyptian-Chinese XD-EGEMAC alliance contracted with the Ministry of Electricity to supply transformer substations for energy transmission from the solar park in Benban to the country’s national grid.


On 12 June, DNE reported that the Egyptian Electricity Transmission Company (EETC) received EGP 800m from solar energy investors as part of the cost-sharing agreements, which are among five agreements signed by qualified investors, in order to establish new and renewable energy projects, according to the feed-in tariff programme.

Cost-sharing agreements include contributions to the cost of linking the planned solar power stations to the national electricity grid, and infrastructure work in Benban.

Every company that obtained land to build a solar power plant in Benban paid EGP 20m of the cost of connection.

Meanwhile, Ibrahim noted that his company plans to export to the markets in the Middle East, Africa, and Gulf countries by the next year, explaining, “our products are very special as we deal with governments, and we must be very well qualified for that,” adding, “we are in the pre-qualification process for Saudi Arabia, Kuwait and the United Arab Emirates. However, we are targeting Libya, Ghana, and Mauritania from African countries.”

Moreover, a meeting is scheduled to take place in early October, which includes company representatives, as well as officials from Ain Shams University and the Ministry of Investment and International Cooperation, to discuss our planned project, and its related memorandum of understanding (MoU), with the aim of canvassing all joint future cooperation details, said Ibrahim.

“We plan to sign a new agreement with Ain Shams University so as to train several students in the company’s headquarters in Ain Sokhna and its training centre,” said Ibrahim.

He added that the company pays significant attention to this type of training, in order to help it find qualified employees when it opens for fresh graduates’ vacancies.

Meanwhile, the planned MoU signing time is not yet determined, noting “the initial discussions clarify that training will be in engineering and languages, however, the early October planned meeting will reveal further detailed information,” Ibrahim elaborated.

The company has about 200 employees at present, Ibrahim noted, adding that EGMAC contributes 49% in XD-EGEMAC and the same value in EGEMAC.

EGMAC produces ring units equipped with seeding knives or isolated with SS6 for up to 24 kV, and motor control centres for use in the industrial, oil, and power generation sectors.

Topics: Benban XD-Egemac

Advertising Area

Advertising Area



https://dailynewsegypt.com/2018/09/25/xd-egemac-establishes-four-new-factories-increasing-investments-up-to-100m/
Breaking News

No current breaking news

Daily News Egypt Android App Available for free download on Google play
View
Daily News Egypt Ios App Available for free download on APP Store
View
Social Media Auto Publish Powered By : XYZScripts.com