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 Alexandria Port.
“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.