UAE family-owned business Corys Investments LLC has announced its joint venture with Georg Fischer Piping Systems, a division of George Fischer, and Egypt Gas, which is listed on the Egyptian Stock market.
The joint venture is named Egypt Gas GF Corys Piping Systems S.A.E., and is expected to establish a production facility for plastic pipes and fabricated fittings for the domestic market near Cairo.
Commercial production is scheduled for a 2021 start with an initial joint venture investment amounting to a total of approximately $21.7m.
In 2018, more than 1.3 million houses were connected to the water and gas network in Egypt. The Egyptian government aims for a similar number to be connected to the gas distribution network each year.
Corys Investments and Georg Fischer will hold an equal stake of 75% in the joint venture, while Egypt Gas will hold 25% of the joint venture.
Speaking about the partnership, chief executive officer of Corys Investments LLC, Mohammed Abdulghaffar Hussain, said: “With the recent strategic joint venture, we look forward to continuing our partnership and combining our technical capabilities to better serve our customers in Egypt."
Commenting on the strategic move, chief executive officer of Georg Fischer, Andreas Müller, said: "By expanding its global footprint to Egypt, GF Piping Systems is taking another step in the implementation of its strategy 2020. We plan to strengthen our presence and bring our know-how of sustainable solutions for the safe transport of water and gas to the Egyptian market."
The signing of the joint venture transaction has been announced with an anticipated closing scheduled for Q1 2020.
Speaking about the arrangement and its scope in the region, chairman and delegated member of Egypt Gas, Wael A. Gowayed, said: "Egypt offers great investment opportunities. The most significant of these is the establishment of many new cities with huge utility networks in which Egypt Gas Company is involved.”