A USD 50 mn home appliances complex incoming?

MANUFACTURING-

#1- Royal Home eyes USD 50 mn appliances complex: Local home appliances manufacturer Royal Home plans to establish a USD 50 mn industrial complex for electrical appliances in the Tenth of Ramadan within two years, the company’s CEO told Al Borsa.

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The details: The hub will have an annual production capacity of 150k units, including refrigerators, deep freezers, air conditioners, fully-automatic washing machines, and stoves — the company's primary product. Some 70% of the complex’s output will be earmarked for export. The group plans to self-finance 65% of the project's cost, with the remainder to be secured through bank facilities. Negotiations are currently underway with the National Bank of Egypt to obtain the required financing in EGP.

#2- Cardboard producer PackTech plans to invest USD 5 mn this year to expand its production capacity, Chairman Alaa El Sakaty told Al Borsa. The company plans to add a new production line at its Badr City facility and boost exports to around USD 15 mn, with plans to expand into the Libyan and Iraqi markets, he said.

REGULATION WATCH-

The Financial Regulatory Authority bumped up the limit on microins. coverage to EGP 312.5k from EGP 250k in a bid to safeguard low-income individuals and bolster their ability to invest in small businesses. The move follows the ratification of the Unified Ins. Law, which came into force in July introducing new, comprehensive rules for regulating the ins. industry.

EXPANSION-

Elsewedy Electric to handle half of Hungarian power project construction: Elsewedy Electric will deliver 50% of the engineering works and supplies needed for the EUR 700 mn combined cycle power plant it is building in Hungary, according to an EGX disclosure (pdf).

ICYMI- Elsewedy Electric was awarded an EPC contract for the plant last month by MVM Matra Energia, marking Elsewedy Electric’s first venture in Europe. The project is expected to be completed by 2028.

AUTOMOTIVE-

Gov’t allocates EGP 1 bn to localize the automotive industry: The Finance Ministry allocated EGP 1 bn in the current fiscal year’s budget to fund the Automotive Industry Development Program (AIDP) and attract investments in car manufacturing, according to a ministry statement. The state aims to increase the local component ratio in vehicle production to over 45% this year.

Leading the way is Nissan: Nissan was the first to receive EGP 120 mn in incentives under the program, the statement read. The Japanese auto giant’s popular Sunny model has the highest local component ratio of any passenger car in the local market and its most recently announced model to be assembled locally will have a local component ratio of no less than 54%.

DEBT-

Banque Misr extends EGP 2.6 bn loan to Hyde Park for North Coast project: Property developer Hyde Park Developments lined up a EGP 2.6 bn medium-term loan with Banque Misr to finance part of the investment cost for its Seashore project, according to a statement (pdf). The project is located on the North Coast, spans 240 feddans, and will include residential and hotel buildings for sale in addition to commercial units available for rent.

STARTUPS-

Investment and portfolio management firm A Ventures upped its stake in waste management startup Mrkoon to 28%, following up on its pre-seed backing, according to a press release. Markoon will use the new capital to fuel its regional expansion into the GCC. Last summer, A Ventures Chairman Ayman Abbas acquired a 20% stake in Mrkoon in a EGP 2 mn transaction.

More on Mrkoon: Founded in 2022, Markoon is a B2B platform that helps industrial and manufacturing businesses offload surplus materials and scraps.