Austrian Kronospan plans to set up wood panel factory in Egypt with $50m investment
The Industrial Development Authority (IDA) is in talks with the Austrian Kronospan, a leading producer of wood panels, flooring, and MDF fiberboard, to allocate a plot of land for the company to establish a new factory in Egypt with an initial investment of $50m.
Mohamed Abdel Karim, the head of the IDA, said that the company requested an area of 100,000 sqm for the factory and that the IDA is studying the possibility of allocating the land to Sadat City or 10th of Ramadan City.
Abdel Karim said that the company aims to meet the local market demand for wood panel products of all kinds and to export to African markets in the later stages. He added that the company relies on the latest European technologies and environmental standards in its new factory, where it uses recycling to provide inputs for its production.
He also said that the IDA will provide all facilities and support to the company, whether in facilitating procedures or granting licenses to start its investments in Egypt as soon as possible.
Abdel Karim highlighted that the new incentive package, which includes major facilitation and exemptions and the expansion of granting golden licenses to all projects that aim to boost local manufacturing, will have a great impact on creating an unprecedented qualitative shift in industrial growth rates and attracting capital locally and internationally for the Egyptian market in the coming period.
He further stated that the government has taken serious steps towards improving the investment climate, which led to an influx of investment applications from various nationalities to establish their projects in Egypt.
Oana Bodea, the CEO of Kronospan, said that the company has an industrial history dating back to 1897 and owns 39 sites around the world employing 18,000 workers.
She stated that the company made its investment decision after extensive technical and marketing studies of the Egyptian market and its confidence in the investment climate in Egypt.