Environmental Review Summary
Project Number
10760
Company Name
ALEXANDRIA AUTOMOTIVE CASTING FREE ZONE SAE
Date ERS Disclosed
Feb 20, 2001
Country
Egypt, Arab Republic of
Region
Africa
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Mar 28, 2001
Signed : Oct 17, 2001
Invested : Nov 21, 2001
Sector
Motor Vehicle Parts
Industry
other
Department
Regional Industry - MAS Africa
Project Description
The project is to establish Alexandria Automotive Casting Company (AAC), which will manufacture medium-technology automotive castings (brake calipers) to be sold under an off-take agreement to Continental Teves. Upon completion, AAC will have a capacity of 20,000 tons per annum.
The proposed project will promote healthy local enterprise in the autoparts sector, an industry in which Egypt has strategic advantage due to its location close to Europe and comparatively lower production costs. The proposed project would create approximately 35 new jobs. As AAC’s production will be mostly for exports, the proposed project will contribute to foreign currency earnings. It will stimulate transfer of the most advanced production technology, know-how and local staff training by Continental Teves to Egypt.
IFC’s role in the proposed project involves: (i) provision of long-term foreign currency financing which is currently not available from local banks; and (ii) encouraging internationally competitive local manufacturers. IFC''s participation in this project would create a demonstration effect for other foreign investors to invest in similar export oriented projects in Egypt.
The proposed project will promote healthy local enterprise in the autoparts sector, an industry in which Egypt has strategic advantage due to its location close to Europe and comparatively lower production costs. The proposed project would create approximately 35 new jobs. As AAC’s production will be mostly for exports, the proposed project will contribute to foreign currency earnings. It will stimulate transfer of the most advanced production technology, know-how and local staff training by Continental Teves to Egypt.
IFC’s role in the proposed project involves: (i) provision of long-term foreign currency financing which is currently not available from local banks; and (ii) encouraging internationally competitive local manufacturers. IFC''s participation in this project would create a demonstration effect for other foreign investors to invest in similar export oriented projects in Egypt.
Environmental and Social
Conclusion & Monitoring
Related SPI
