LG is setting up a USD 150 mn refrigerator line
#1- LG plans to invest USD 150 mn in refrigerator production line: Korean home appliance giant LG plans to add a new USD 150 mn refrigerator production line to its Tenth of Ramadan factory, which currently houses one washing machine and television production lines, the company said in a press release (pdf). The new production line is in the preparation phase, LG Egypt Managing Director Billy Kim told Al Borsa, without disclosing its completion date.
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#2- A new pump factory may be in the works: Turkish pump manufacturer Turbosan is mulling setting up a factory in Egypt as part of a larger effort to increase its presence in the local market, according to a Housing Ministry statement.
Remember: Pumps were among the 12 products selected by the housing and industry ministries to serve as the focus of our localization efforts in the coming period.
INFRASTRUCTURE-
Government agencies can now grant contractors working on public projects up to a six-month extension on their implementation timelines, according to a circular issued by the cabinet. Contractors must justify their extension requests and will be held legally accountable if they attempt to delay construction or otherwise violate their contracts, the circular said.
The backstory: The decision follows complaints from members of the Egyptian Federation of Construction and Building Contractors (EFCBC) about the withdrawal of work from companies unable to complete their work on schedule, which the Federation chalked up to rising costs rather than firm malfeasance.
Public contractors are facing economic headwinds: Companies working with government entities are bound by strict laws and decisions that have caused severe losses, now increasing further with the recent fuel price hike, EFCBC member Mohamed Abdel Raouf told EnterpriseAM earlier this week.
REGULATION-
Tighter rules on land transfers to curb speculation: Industrial land can no longer be sold or transferred without approval from the Industrial Development Authority, with the receiving party now required to pay in full for the land, make an effort to obtain all operational licenses necessary to develop the land, and start operations for no less than three years before engaging in any transaction with respect to the land, according to an authority statement.
The backstory: The move comes amid an ongoing push to curb industrial land speculation amid concerns that developers have been acquiring land to profit from land price increases rather than to develop it.
LOGISTICS-
Pargo brings its smart logistics services to Egypt: South Africa-based logistics firm Pargo has secured some USD 4 mn in funding to fuel its expansion into Egypt, it said in a press release (pdf). Pargo has rolled out its collect and return services — which allow people to collect or return their online orders at their convenience — across 500 pickup points, including Fawry, Circle-K, and Basata stores.
More on Pargo: The logistics company launched its pilot program in Egypt back in 2023, testing its services with 150 pickup points before its official rollout.
CAPITAL MARKETS-
PFI Asset Management to manage GIG Ins. funds: PFI Asset Management — Post for Investment’s newly formed asset management company — will oversee GIG Ins.’s Money Market and Equity Funds.