PROJECT

Projects

Summary of Proposed Investment

Project Number

10947

Company Name

Al-Amir for Sanitary Ware Production, S.A.E.

Date SPI Disclosed

Sep 28, 2001

Country

Egypt, Arab Republic of

Industry

Manufacturing

Projected Board Date

Nov 1, 2001

Status

Completed

Sector

Pottery, Ceramic, and Plumbing Fixtures (Including Kitchenware)

Department

Regional Industry - MAS Africa

Environmental Category

B - Limited

Previous Events

Approved : Dec 6, 2001
Signed : Jan 28, 2002
Invested : Mar 1, 2002

Project Description

The proposed investment involves the construction of a modern green-field turn-key facility for the production of vitreous china ceramic sanitaryware. The annual capacity is 350,000 pieces.

The proposed project would meet the needs of a big market growing at a rate of more than 15% annually, and would capitalize on: (i) the sponsors'' established distribution network through which it is already selling 200,000 pieces of sanitaryware annually (60% of Gava''s proposed capacity), and (ii) internationally competitive production costs due to cheap labor, raw materials and energy. Moreover, Gava would be able to share overhead costs with Al-Amir, thus providing the company with additional competitive advantage.

Development Impact: The project will result in roughly 220 new jobs along with training in new skills and technologies.

IFC Role: Local term loans being scarce, IFC will provide much needed long-term financing to this company for the proposed project. Moreover, IFC''s input will substantially assist the company in negotiating with equipment suppliers; in addition, IFC''s review of technical agreements will ensure that the company obtains appropriate technical support after plant commissioning. IFC''s participation will also ensure adherence to strict environmental, social and corporate governance standards.

Sponsor / Cost / Location

Development Impact