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Al-Wazir: Drive to attract private investment in public sector factories

فريق رجال الأعمال news 12 May 2025 11:50 AM
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Al-Wazir: Drive to attract private investment in public sector factories

Minister of Industry Kamel Al-Wazir chaired the 23rd Industrial Development Ministerial Group meeting. He pointed out that there are directives from the political leadership to the Ministries of Industry and Public Business Sector to attract investors from the foreign and Arab private sectors to form partnerships with public business sector factories. This aims to leverage the available potential and maximize the utilization of the state's unexploited assets, benefiting both the Egyptian economy and the investors.

The meeting addressed a request from a company seeking a golden license to establish a $640 million soda ash production project in New Alamein. Economic indicators and the project's environmental study were presented. The committee agreed on the need for a thorough study encompassing the project's electricity consumption, operating costs, environmental impact mitigation, and sludge management. A small ministerial committee will be formed to examine the project for any environmental repercussions. Kamel Al-Wazir emphasized that no industrial waste discharge into the sea or underground will be permitted, regardless of the project's economic viability, to safeguard groundwater, soil, and the ecological balance. Adherence to environmental standards is a fundamental prerequisite for licensing and operating any industrial project, especially as the Ministry of Industry champions a clear policy balancing economic development and environmental protection.

The meeting reviewed and approved a private sector company's request for a partnership with Misr Helwan Spinning and Weaving to utilize part of its factory for production. The Minister affirmed the Ministry of Industry's commitment to preserving state industrial assets by maintaining and sustaining existing structures in public business sector factories, avoiding demolition to maximize infrastructure benefits. This includes rehabilitating existing facilities to save costs associated with new projects and utilities. The Ministry is developing mechanisms with relevant authorities to assess and manage existing buildings and land (through self-development or private sector partnerships like leasing or sale) based on the principle that asset preservation is key to sustainable development.

The meeting addressed an Arab Organization for Industrialization study on establishing an MDF wood factory (100,000 cubic meters annually) from palm fronds in the South Valley Governorate, in partnership with German investors. This project aims to utilize the region's abundant palm waste (4 million trees) for industrial purposes instead of disposal. The Minister stressed the need for an integrated palm waste industry and suggested using the Qena factory for a 6-month pilot production to precede a new factory based on the trial's success.

The meeting reviewed and approved a company's request for a golden license to establish an agricultural crop processing project in Sadat City. The Minister stated that golden licenses are for strategic projects, requiring timely approvals from all relevant authorities. The head of the Industrial Development Authority's appointment to the General Authority for Investment and Free Zones board aims to ensure all golden license projects have the necessary industrial approvals.

The meeting reviewed a Ministry of Industry study on Egypt's key mineral resources, emphasizing their industrial importance and classifying them by abundance. Egypt's strategic minerals, including kaolin, phosphate, and quartz, were discussed, with the Minister stressing raw kaolin export after local needs are met and encouraging high-quality calcined kaolin exports (produced at 850-950°C).

Regarding phosphate, the study recommended increasing ore concentration above 25% to maximize added value and boost local production of fertilizers and chemicals. The meeting also addressed challenges in securing strategic raw materials amid rising global demand. Suboptimal use of high-quality quarry materials, particularly limestone in white brick production, was highlighted as wasteful. The Minister directed increased use of alternatives like cement bricks made from construction waste to promote recycling and reduce resource waste.

The meeting discussed developing the white sand sector to support the national economy and enhance local industrial competitiveness. Properties, locations, extraction, and manufacturing challenges/opportunities of white sand were reviewed. Key recommendations included supporting existing mineral processing factories for optimal local resource provision, expanding rock wool factories for global export demand, linking industrial zones with mining areas, and exploring the integration or creation of mining-focused industrial zones.