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IFC Invests in new El Motaheda Paper Mill to Support Egypt Industry and Recycling


In Cairo:
Riham Mustafa
Phone: +20224614230
E-mail: RMustafa@ifc.org

In London
Carmen Powell
Phone: +44-207-722-0649
E-mail:CPowell@ifc.org


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 Printing Company.

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.

About IFC
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 www.ifc.org.

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.