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Egypt - Ministry starting operations of 5 tanneries end of May
25 April 2017

The Minister of Trade and Industry Tarek Kabil announced the completion of processing the first batch of tanneries of the Al Robeiki Leather City project in Badr City, stating that they have been provided with machines and equipment for the start of operations.

Kabil added that the transfer and installation process of ten plants—the first phase of transferring plants to the new city—is being completed as part of the initiative announced by the ministry to help the first ten plants in sharing the costs of transporting equipment.

The ministry plans to complete equipping five tanneries with all machines, he said, noting that operations will start by the end of May.

He pointed out that a large number of producers have contracted to import the latest machines in the field of tanning, which have already arrived in Al Robeiki Leather City and are currently being installed, adding that this equipment will contribute to the development of this important industry.

He agreed that producers that have additional space for their plants are to pay 25% of the value within three months and the rest within a year, instead of paying the total value in only three months, in order to ensure the producers do not bear additional burdens.

Kabil stated that the work is taking place within the city according to the plan to complete this huge national project, which will contribute to making a leap in the leather industry and making Egypt a strategic centre for the leather industry regionally and internationally.

The service area, which includes shops, a clinic centre, a police station, and a fire station, is already developed, and the construction of the concrete bases in the facilities is completed. Additionally, the implementation of the natural gas feed network for the first phase is also completed.

Kabil said that the construction of the second phase has already started and was awarded to a major contracting company last January.

"200 million Egyptian pounds have been allocated from the Establishment and Facilitating of Industrial Zones Fund for the implementation of the second phase, which is due to be completed early next year," Kabil added.

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