German investments in East Port Said worth €70M

CAIRO – 13 August 2018: East Port Said Development Company signed two agreements with two subsidiaries of the German Company Business Avenue Group with investments of €70 million.

The two subsidiaries of the German Company are BAG East Port Said and Gerda Egypt, an official statement revealed.

The agreements were signed in the presence of Chairman of the Suez Canal Authority Mohab Mamish and Chairman of East Port Said Development Company Karim Samy.
The first agreement was signed with BAG East Port Said Company, targeting a project on a land plot of 30,000 square meters with an investment cost of €55 million to offer new job opportunities for more than 300 workers.

BAG East Port Said is one of the German Business Avenue Group companies established in the economic zone for the production and marketing of irrigation systems with the latest technologies providing irrigation water and reducing the cost of irrigation systems.

The second agreement is signed with Gerda Egypt for a project on a land of about 20,000 square meters, with an investment cost of €15 million, to offer new job opportunities for more than 150 workers.

The company was established in the economic zone as a partnership between German company Gerda and Business Avenue Group.
According to the statement, these agreements came in the framework of the company’s developing allocated area by the Economic Zone to attract a number of foreign investments and the establishment of a number of projects in East Port Said’s industrial zone.

Mamish said that this is the first step to activate contracts signed between Egypt and Germany last year, especially given investments in East Port Said.
“The signing of these two contracts marks the beginning of the real development in East Port Said,” Mamish added.

Construction is expected to begin in early November after the Suez Canal Economic Authority handed over land to improve soil properties by the Engineering Authority.
East Port Said Development (EPSD) is the developer and promoter of the new industrial area in East Port Said Special Economic Zone.

The zone is located at Egypt’s most strategic location, the northern end of the Suez Canal. The company was established by the Industrial Development Group (IDG), the National Service Project Organization (NSPO) and SAMCRETE.

Last September, Mamish witnessed the signing of initial letters between the East Port Said Development Company and the German company Bavarian to establish five factories on an area of 40,000 square meters. Factories include the industries of tractors, buses, irrigation systems, armored doors factory and another to produce iron locks.