Alexandria Automotive Casting Company

completed

The project is to establish Alexandria Automotive Casting Company, which will manufacture medium-technology automotive castings (brake calipers) to be sold under an off-take agreement to Continental Teves. Upon completion, AAC will have a capacity of 20,000 tons per annum.The proposed project will promote local enterprise in the autoparts sector, an industry in which Egypt has a strategic advantage due to its location close to Europe and comparatively lower production costs. The proposed project would create approximately 35 new jobs. As AAC’s production will be mostly for exports, the proposed project will contribute to foreign currency earnings. It will stimulate transfer of the most advanced production technology, know-how and local staff training by Continental Teves to Egypt.IFC’s role in the proposed project involves: (i) provision of long-term foreign currency financing which is currently not available from local banks; and (ii) encouraging the development of internationally competitive local manufacturers. IFC''s participation in this project would create a demonstration effect for other foreign investors to invest in similar export oriented projects in Egypt.