04:59 PM
Friday 10 September 2021
The annual production volume is 250 million dollars, and we export 25% of it abroad
We recently obtained the certificates of the Egyptian local ingredient and the certificate of “Proudly Made in Egypt”
The Egyptian market is very promising, and the economic reforms in Egypt have been an excellent result
I wrote – Yasmine Selim:
ABB Egypt has invested about $200 million in the country during the last 10 years, and plans to make more investments in the near future, according to Louay Dajani, General Manager of ABB in Egypt, and Sherif Ismail, sales manager for the electrical products sector – ABB in Egypt, in an interview with Masrawy.
ABB Egypt works in the field of manufacturing electrical tools and providing digital solutions for smart cities and energy systems that will accelerate the transformation of society and industry to achieve a more productive and sustainable future.
The two company officials expected that a major boom would occur in the industrial field in Egypt after the remarkable development in the infrastructure, praising the stable economic climate and high growth rates.
Dajani and Ismail explained the benefit of the company recently obtaining a certificate of the local component, and their participation in the largest water treatment plant in the world, which will open soon, in addition to the projects of the new administrative capital and the iconic tower – the tallest tower in Africa.
And the text of the interview.
Tell us about your company and the size of its business in Egypt?
We are a global company primarily working in the field of energy technology and electric power. The company’s products are diverse and present in more than one sector, and we have been in Egypt since 1979. The Egyptian market is an important market and the growth opportunities are very promising, as it is an important center for Africa and the Middle East, so the company’s products that we produce in Egypt Part of it is exported to Africa and the Middle East, such as the UAE, Saudi Arabia and many countries of the Egyptian market.
Therefore, we have injected large investments in the last 10 years, amounting to 200 million dollars, between increased investments and expansions in the company’s business.
What is the company’s annual production volume?
Our total production in Egypt is $250 million.
What percentage of products and solutions are exported from the Egyptian market?
About 20 to 25% of our production in Egypt is exported to 20 countries in Africa through the company’s representative offices in Nigeria and Ghana, and we also export to Europe, Saudi Arabia and the Gulf countries.
Where are your investments concentrated in Egypt?
ABB has been present in Egypt since 1979. We have a factory complex on an area of about 100,000 square meters in the Tenth of Ramadan City, in addition to an assembly plant in the free zone in Nasr City, a regional motors workshop in El Obour City, an administrative building in the Fifth Settlement, and another branch in Alexandria.
With the outbreak of the January revolution, and contrary to the prevailing trend at that period, we had a better future vision for Egypt, so we pumped new investments at that time to establish a new factory for electric kiosks in Egypt, which is the largest among the company’s factories around the world. The company has also developed factories, raised their efficiency and increased our investments. We also established a technology building on the 10th of Ramadan with the latest global technology.
What are the most prominent projects that ABB Egypt has contributed to?
Since 1979, the company has been responsible for the largest projects established in Egypt in the field of industry, water, desalination and water treatment. Until 2000, 40% of the electricity grid products in Egypt were ABB Egypt products.
Currently, Egypt has a very large development and is establishing 17 new cities, and we are present as a main supplier of electricity products that enjoy a high degree of safety and sustainability with the Urban Communities Authority and the Ministry of Housing.
Does ABB Egypt supply all of its production to the government?
We work with the government through the Ministries of Electricity and Petroleum, and we also participated as a major supplier in the project to construct the largest water treatment plant in the world, which will open soon. We also participated in all the construction that takes place in the New Administrative Capital with medium and low voltage distributors with the Capital Company and in most private residential projects, We also signed 4 contracts with the Chinese company CSCEC to supply all main electricity products and medium voltage products in the financial and business district and a contract for towers in the financial and business center and the iconic tower. of electricity consumption, which is a feature of the company’s products in particular, and we also provide our services and products with offices and companies outside the government framework.
How do you plan your investments in Egypt in the coming years?
Our investments in Egypt will not end, and the development that we are witnessing in the Egyptian market is great, there is a great revolution in roads, infrastructure and real estate, and in the company we expect that there will be a great development in the industrial field, because companies will come to invest in Egypt due to the stable economic climate.
How many factories does the company have in the Tenth of Ramadan City?
We have 12 factories including 7 factories engaged in supplying medium and low voltage electricity distribution products.
How do you see the investment opportunities in Egypt now?
The basics of investment in Egypt are very clear, and it depends on 3 things, the first of which is that the economic growth rate is high and is the highest in the Middle East, and that Egypt can serve many countries in Africa due to its geographical location and the political and economic climate that allows it. As for the third thing, we see a great development It is expected in the field of industry in Egypt after the current infrastructure development, and the industry will have the opportunity to attract many investments.
And when we find the right climate, our investments will have a clear return, so we see that the opportunity is very promising in Egypt compared to many countries in the region. abroad to Egypt. In light of the financial and security stability in Egypt now, and if the volume of business that takes place or could take place in Egypt or the region, and we can export our products to them from Egypt, is sufficient to inject new investments, this decision will be easy and available.
In 2016, Egypt implemented an economic reform program. How do you see the impact of this program on your business?
All macroeconomic indicators are very positive, and the numbers are what highlight the result of the reforms implemented by Egypt, especially since Egypt has the highest growth rate in the region. multiple.
How has the spread of the Corona virus affected your business in Egypt?
Like all companies, we were affected, and our goal was to preserve the health of our employees and their families in the first place, and at the same time serve the market and maintain our commitments to customers and employees without being affected, and the fact that Egypt dealt very well and balanced with the Corona crisis, and combined preserving the lives of citizens and in At the same time, keep the wheel of the economy and growth going without stopping.
Recently the company obtained the certificate of the Egyptian local component, what does this certificate mean for your business?
We obtained the certificate of the Egyptian local component thanks to our achievement of more than 40% of the local component in all the electricity distribution products produced by our factories in the tenth of Ramadan. The certificate gives preference to ABB products as an Egyptian product by activating the local product preference law, which aims mainly to encourage the Egyptian industry and give preference to Egyptian products among the products contracted through government tenders and contracts. We also obtained the “Proudly .. Made in Egypt” certificate, which requires the application of the highest comprehensive quality standards approved by the Egyptian or international accreditation bodies for the manufacturers of a high quality Egyptian product. This came after long efforts and discussions with the committees that examined factories and production lines. Under the certificate, we will be committed to 40% of the local component in all our products, and in general, the certificate gives us an advantage in the event we enter into government tenders, compared to others who have products imported from abroad. The certificate of the local component will also give preference to ABB products in export operations to countries between it and Egypt Free trade agreements, which will contribute to increasing the added value of the Egyptian industry and increasing the contribution of the private sector to economic growth through the development of a diversified industrial base of local suppliers that provide a product at a competitive price and with high quality.
What are the policies that your company would like to implement in Egypt to facilitate the investment environment more?
There must be continuity in applying laws, in addition to renewing them. There are products that have begun to appear and are being dealt with in many new projects and infrastructure projects, and they need new and clear laws to facilitate their entry and deal with them in an instant and fast, such as car chargers and buses that will work with electricity.
As for monetary and financial policies, there is clear stability, and we see, for example, that the foreign cash reserves in Egypt are increasing, and this is something that helps pump more investments and encourages dealing in the Egyptian pound, and the movement of the exchange rate of the pound is reassuring and it trades well.
Tell us about the corporate social responsibility?
Sustainability is an integral part of all aspects of our business. We strive to achieve economic balance, environmental and social goals and integrate them into our daily business decisions. We are interested in the participation of the Egyptian community in many projects, especially in the health sector through the renovation of schools and government school clinics, as well as the replacement and renewal of the infrastructure of a number of government hospitals such as Abul-Rish and Demerdash Hospital. Improving energy efficiency performance to accommodate the increased electrical loads in these hospitals, which serve millions of patients free of charge annually. ABB also assumes its social responsibilities to include the education sector, as the company supported the Faculty of Engineering, Cairo University, by installing a 31 kilowatt solar energy network on the roof of one of the university’s buildings.
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