Cairo, October 11, 2001—The International
Finance Corporation, the private sector arm of the World Bank Group, has
signed an agreement to invest $3 million to support the establishment of
a high-quality Egyptian automotive parts exporter.
The IFC investment will support a US$14.0 million project to establish
Alexandria Automotive Castings Company (AAC) with an annual single shift
capacity of 18,000 tons of automotive castings. These castings will
be sold to a leading German automotive brake systems manufacturer. The
company will be located in the Merghem-Amreya Industrial Zone, near the
“The proposed project will promote a solid local enterprise in the auto
parts sector, as well as creating much-needed new jobs,” said Mr. Sami
Haddad, Director of IFC’s Middle East and North Africa Department. “This
is an industry in which Egypt has comparative advantage due to its proximity
to Europe and comparatively lower production costs,” he added. “Additionally,
since AAC’s production will be for exports, the project will contribute
to foreign currency earnings and will stimulate the transfer of the most
advanced production technology, know-how and local staff training to Egypt,”
Mr. Haddad said.
The company is owned by El Mansour and El Maghraby Investment Development
Company (MMID), Mansour Automotive Company, Commercial International
Investment Company (CIIC), Olympic Group Financial Investment Company,
the Sid Ahmed family and Mr. Said Ahmed Mohsen.
IFC’s mission is to promote sustainable private sector investment in developing
countries, helping to reduce poverty and improve people's lives. IFC
finances private sector investments in the developing world, mobilizes
capital in the international financial markets, and provides technical
assistance and advice to governments and businesses. Since its founding
in 1956, IFC has committed more than $31 billion of its own funds and arranged
$20 billion in syndications for 2,636 companies in 140 developing countries.
IFC’s committed portfolio at the end of FY01 was $14.3 billion.