Cairo, Egypt, March 29, 2011—IFC,
a member of the World Bank Group, is investing to complete the construction
of El Motaheda S.A.E.'s new paper mill outside Cairo to help create jobs
and reduce greenhouse gas emissions in Egypt.
IFC will invest up to $10 million in
equity and provide a loan of up to $15.5 million toward completing the
paper plant, which will be located 60 kilometers outside Cairo in the Sadat
City industrial zone. The plant is expected to use recycled fibre from
local wastepaper as the main raw material to produce duplex board, which
is used to package many products.The mill will create an estimated 300
direct manufacturing jobs and 550 indirect jobs through the collection
and transport of wastepaper.
In addition, the availability of high-quality
locally produced duplex will help replace imports and benefit domestic
and regional consumer goods companies, local consumers, and the local economy
by reducing costs.
“Our goal is to transform Egypt into
a regional hub for the packaging industry, becoming the primary provider
of high-quality packaging materials for multinationals and exporters alike,”
said Ibrahim El Moallem, chairman of Modern Shorouk for Printing and Packaging,
the parent company of El Motaheda, and a key shareholder in the National
Egypt produces an estimated 60,000 tons
of solid waste each day, of which around 12,000 tons is paper, yet the
country imports wastepaper and pulp for its paper product industries. The
new mill and its domestic supply chain promise to significantly reduce
the volume of discarded wastepaper and carbon emissions from its decay.
“The jobs created from building this
new paper mill demonstrate the importance of the private sector as an economic
growth and employment generator,” said Rashad Kaldany, IFC Vice President
for Asia, Eastern Europe, the Middle East and North Africa. “Moreover,
using locally sourced recycled paper helps fulfil IFC’s mandate to support
resource-efficient manufacturing and to address causes of climate change
in the region.”
IFC is committed to fostering economic
development in the Middle East and North Africa through an integrated investment
and advisory services program, underpinned by the conviction that the private
sector plays a key role in reducing poverty and creating jobs, particularly
for the region’s large population of unemployed youth.
El Motaheda’s parent firm, National
Printing Company Ltd., is one of the largest converting and printing houses
for consumer packaging in Egypt. Through its two key subsidiaries, Modern
Shorouk for Printing, and El Baddar for Packages, its operations include
book printing, folded board boxes, corrugated boxes and sheets, laminated
packaging, and paper cups and bags.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit
About El Motaheda S.A.E.
Motaheda S.A.E. National Printing Company
Ltd.—El Motaheda’s parent company —was formed in 2006 by Grandview Investment
Holdings Corporation and Mr. Ibrahim El Moallem. National Printing controls
89.9 percent of Modern Shorouk for Printing and 94.3 percent of El Baddar
for Packages. Grandview Investment Holding is the small- and mid-cap investments
Platform Company of Citadel Capital S.A.E., the leading private equity
firm in the Middle East and Africa with investments of $ 8.6 billion in
14 countries spanning 15 industries.