CAIRO: KSA-based Construction Products Holding Company (CPC) intends to inject $80 million in investments for establishing three new factories in the Egyptian market, CPC’s operation executive manager Reyad Kiwan revealed Tuesday.
The announcement came during the joint conference held Tuesday in Cairo on the occasion of completing the transfer of Sphinx Glass, a subsidiary of Qalaa Holdings (formerly Citadel Capital,) to CPC Emirates, a unit of Saudi-based CPC.
“The new factories will include a factory for aluminum shaping with an investment cost valued at $40 million, a plant for glass coloring at the cost of $15 million, while a third factory with an estimated cost of $20 million will be established to produce aluminum used in building and construction,” Kiwan detailed in his speech at the joint conference.
“CPC is also considering an acquisition of an Egyptian building-material company with the aim of intensifying their presence in the Egyptian market and increasing its competitiveness in neighboring markets as well,” Kiwan added.
CPC signed the contract for acquiring 100 percent of Sphinx Glass at a deal worth 816 million EGP ($ 114.2 million); the Sphinx Glass’ employed capital being 430 million EGP. Sphinx Glass produces 200,000 tons of float glass annually, one of the largest float glass producers in the MENA region. In 2013, it registered 393 million EGP in sales.
CPC has made the deal in line with its strategy to expand its international activities in Egypt, which had begun in 2007 through establishing the first industrial complex and other factories, Qalaa Holdings said.
“Qalaa Holdings’ 73.3 percent stake in Sphinx Glass will result in cash proceeds worth 508 million EGP ($71 million) to Qalaa Holdings after the estimated capital gains tax,” according to a statement to the Egyptian Exchange.
Qalaa Holdings decided to sell Sphinx Glass in line of its strategy to abandon “non-core projects” to focus on “strategic sectors” such as energy, cement, transportation, logistics, food and mining, the company said.
During the conference, Qalaa Holdings Chairman and Founder Ahmed Heikal and Sheikh Saleh bin Laden discussed the role of Saudi investors in Egypt in the next months and the potential opportunities for them during the signing of the agreement.
“Sphinx Glass is one of the most technologically advanced float glass producers in Egypt and is managed by a highly professional team. It is a perfect complement to our existing portfolio of building materials manufacturing facilities and an important step in our expansion drive in Egypt and the region,” Bin Laden said.