Transcript Diapositive 1 - CONFINDUSTRIA

Textile City:
An Egyptian-Italian
Partnership For Success
April 10th 2008
This document reproduces the elements of a visual presentation.
It is incomplete without the oral comments which accompany it.
Structure of the presentation

1. Egypt & Setcore
2. Textile City in Borg El Arab
3. Government support and facilities
2
Egypt is a natural destination for textile
investment

The land of the finest long & extra long staple
cotton

Strategic geographic location
 Bridging Europe, Asia and Africa
 Proximity to European ports

Young, abundant and competitive labor force
 A working population of 22 m
 41% of the population between 15 and 39
3
One of the most competitive countries for
industrial investment
COST ITEM (in
USD)
Labor hourly
wage
Electricity/KW
Water/M
3
EGYPT
JORDAN
TURKEY
INDIA
ITALY
0.40 (1.15)
0.90
2.80
0.50
15
0.03
0.05
0.077
0.086
0.09
0.21
1.80
0.46
0.70
0.28
Natural Gas /M3
0.035
N/A
0.26
0.24
0.21
Construction/M2
150
200
180
140
480
4
The Egyptian government is building on these
advantages

Increasing deregulation and liberalization of economy
 Privatization of key sectors such as banking and infrastructure

Faster and more cost effective transactions



Establishment and reform of dedicated institutions: Ministry of Investment, IDA, GAFI….
A One-Stop-Shop enabling company incorporation within 7 days
A developed banking sector with better access to finance
 The state divested 94% of its bank portfolio in the past 18 months
 International players brought competitiveness and transparency
 Easier distant transactions with a solid web banking infrastructure
5
Setcore became a major player in the cotton
trading business in 1995

Exporting to more than 20 countries

Introduced innovations and streamlined
cotton trading business

The second largest exporter of Egyptian
cotton.
6
In 2003, Setcore entered the yarn manufacturing
business
A state of the art spinning mill
Three phase project
The latest spinning technology with 60000
30000 Spindles in 2003
Capacity was doubled in January 2007
Further expansion is planned
spindles, gassing and twisting plant
Focus on fine count yarn spinning and
providing comprehensive customer service
7
Focus on customer service and quality
Customer Service
2. The highest quality standard
1.
Closer to the
Customer
Production
efficiency
Quality culture
1. Investment in latest technology
2. QHSE program with preventive maintenance
3. Cotton supply control
4. On going training & people motivation
8
Supply chain
management
Structure of the presentation
1.Why Egypt?

2. Textile City in Borg El Arab
3. Government support and facilities
9
Borg El Arab is ideal for a textile cluster

Great location
 Near Alexandria, the centre of cotton trade
 Quick access to the port and to the airport

Availability of infrastructure
 M²1,2million
of land is dedicated for the
cluster
 Availability of utilities: water, electricity,
natural gas

Minor issue with the labour force
 No local labour force in Borg El Arab
 We need to offer housing to attract workers
10
Borg Al
Arab
The foundation of a successful cluster is in place
Negotiations under way with world
class Finishing Company
Joint Italian, Swiss, &
Egyptian dyeing)
Italian
Weaving
Egyptian
Spinning
Pakistani
Spinning
FINISHING??
SEIF GROUP
S
E
T
C
O
R
E
1
FILMAR
alba
GROUP
DELTA
ALBINI
S
E
T
C
O
R
E
2
SETCORE - 3
Italian Twisting &
Mercerizing
11
Swiss
Weaving
Mediterranean Textile project is progressing and will
start production in August
12
Elvy Weaving will start production in November
13
Structure of the presentation
1. Why Egypt
2. Textile City in Borg El Arab
 3. Government support and facilities
14
A comprehensive joint collaboration strategy
between Italy & Egypt
Technological &
Industrial
Cooperation
Investment
Promotion
Financial
Instruments
Vocational
Training & Skills
Development
15
Egypt’s Ministry of Trade and Industry provides strong
support to our project
Coordination and fast tracking with
different government agencies to make
the process easy and quick
GAFI


IDA


Borg El Arab City
Council


Easy access to the Free Zone activities licences
An expedited company incorporation procedure
Quick land acquisition procedure
Attractive land cost and payment terms
Speed up building and activity licences
Speed up utilities connection
16
Several partners from both sides are engaged in the
strategy

Acquisition of 25% stock in a joint

venture

Reduced interest rates

Finance feasibility study

Access to med fund
An agency of the Milan chamber of
commerce

Promotion of Egyptian Italian
Industrial parks

Competitiveness programs

Regional cluster development
programs

Industrial training courses support
17
Conclusion
 Egypt has natural advantages for textile business
 Government reforms are creating a favorable business environment
 Setcore Spinning is an example of successful project in Borg El Arab
 European textile industry is facing increasing competitive pressure
 Textile City in Borg El Arab can provide competitive advantages to the
industry as well as benefits to Egypt
 With government support, Setcore and its partners are building the
foundations for a successful cluster
 A partnership between all players is crucial to continue build
 Good opportunities and assistance are offered by the both the Egyptian
and Italian authorities to make us succeed
18
Thank you
Q&A Session
19