Minister of Trade and Industry Ahmed Samir announced on Wednesday that Taiwan's Ritchie is in the process of establishing a project to produce an air-conditioning compressor in Egypt in cooperation with the Al-Araby Group with a total investment of $33m and a production capacity of 6 million compressors annually. Actual production is planned to kick-off in 2024. The minister said that the new project will be built in the industrial zone of Kom Abu Radi in Beni Suef on an area of 60,000 sqm, noting that the project's initial production volume is 2m units and is expected to increase to 6m units within five years. Samir added that the project aims to meet the needs of the local market and export 50% of production to regional and international markets by taking advantage of preferential advantages offered by free trade agreements signed between Egypt and a large number of countries and major economic blocs around the world. He also pointed out that the factory will produce an air-conditioning compressor with a capacity of 1.5-3 horsepower, adding that the proportion of local components in the final product will be 50% at the beginning of production and will gradually increase. Samir also highlighted the ministry's keenness to attract international industrial companies to invest in the Egyptian market and contribute to the settlement of technological industries while relying on raw materials and natural resources available in the local market. For his part, Chen Sheng Tian — Chairperson of Ritchie — stated that the company is keen to invest and expand in the Egyptian market, as it is one of the main investment destinations in the Middle East, which enjoys many advantages that include free access to products within the framework of free trade agreements and the low cost of shipping. He added that there's also the possibility of benefiting from the Suez Canal as one of the main shipping lanes in the world. Furthermore, he pointed out that the parent company produces about 20m air-conditioning compressor units annually and ranks fourth among the largest compressor producers in global supply chains. CEO of Al-Araby Group Mohamed Mahmoud Al-Araby explained that negotiations are currently underway with Ritchie to set up a number of projects in the Egyptian market in the fields of producing refrigerators and air conditioners. He added that Al-Araby Group will soon open a new factory specialised in tin anatomy, which provides one of the main production inputs for the group's home appliance industries.
