Corys Investments has announced a joint venture (JV) with Georg Fischer (GF) Piping Systems, a division of GF, and Egypt Gas, listed on the Egyptian Stock market and the largest company for natural gas infrastructure in the Middle East.
The JV, in which UAE-headquartered Corys and GF will take the industrial lead, will invest in a major production site for plastic pipes to participate in the soaring Egyptian gas and water distribution market.
Mohammed Abdulghaffar Hussain, CEO of Corys Investments Holding, said: “Since its inception, Corys has been committed to provide best-in-class solutions to customers that address the environmental challenges of the UAE and the wider Middle East. Our companies have shared a close relationship for many years now. With this new strategic joint venture, we look forward to continuing our partnership and combining our technical capabilities to serve our existing and new customers in Egypt even better."
Named Egypt Gas GF Corys Piping Systems S.A.E., the JV will set up a new production facility for the domestic market near Cairo. Commercial production is planned to start in 2021. The initial JV investment will amount to approx. AED80m in total.
Currently, Egypt is undergoing a major governmental initiative to develop its gas and water infrastructure. In 2018, more than 1.3 million households were connected to the network.
Andreas Müller, CEO of GF said: "By expanding its global footprint to Egypt, GF Piping Systems is taking another step in the implementation of its strategy 2020. Together with the expertise of our partners, 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."
"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. Therefore, the idea of this joint venture makes a lot sense and is beneficial. It is an important achievement, and I am absolutely delighted and very proud of it," added Wael A. Gowayed, chairman and delegated member of Egypt Gas.
According to Egyptian government forecasts, over one million new users will be connected to the gas distribution network each year.
Corys, which was founded in 1977, has a strong heritage in the UAE and has a long-standing and trusted partnership with GF in the Middle East.
Together with GF, Corys will hold equally a combined stake of 75% in the new JV whilst Egypt Gas will hold 25%.
Egypt Gas was established in 1983 by the Egyptian government and was the first company in the field of natural gas networking.