MEG

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       The IFC project under consideration will refinance Middle East Glass Manufacturing Company’s (http://middleeastglass.com)  (“MEG” or “the company”) existing long-term loans, denominated in both EGP and US$, and the ongoing capital expenditures program, including three major furnace rebuilds, resource efficiency improvements and the operational streamlining of the cullet processing operation (the “project”). In addition to IFC funds of US$100 million, the Group will contribute up to US$26 million from internal cash generation, bringing total Project costs to US$126 million. The uses of funds are as follows: US$67 million for the refinancing and US$59 million for capex. MEG is a glass container manufacturing group incorporated in Egypt and listed in the Egyptian Stock Exchange. The company manufactures glass bottles and containers for the food & beverage and pharmaceutical sectors, and its product portfolio covers a wide range of glass packaging applications including soft drinks, alcoholic drinks, pharmaceuticals, edible oils, and dairy. The total production of the company is at 260,000 tons per annum (tpa) with a daily melt capacity of over 1,000 tons for both flint and colored glass. Glass packaging is offered in three colors, namely, flint, green and amber. The production is spread across three separate plants in Egypt: (i) MEG headquarters (HQ), (ii) MEG Sadat and (iii) MGM. MEG headquarters plant started operation in 1983, and it has one regenerative furnace with 3 production lines, and 4 printing machines. The furnace was last rebuilt in 2009. The plant’s annual production capacity is 84,000 tons and it produces both flint and green containers. The plant is in the 6th district, Nasr city, Cairo (https://goo.gl/maps/MicTUvrw54C2). The neighboring plant is Coca-Cola one of the main clients of MEG. From the other borders, MEG is surrounded by a military camp. MGM plant started operation in 1968, and was acquired by MEG in 2016. The plant houses three furnaces (two regenerative and one recuperative), and 7 production lines and 4 printing machines. . Two of the furnaces were refurbished in 2010 and 2012, and the third was installed in 2014.  The annual production capacity of the plant is 106,000 tons and it produces flint, green and amber containers. The plant is in the Petroleum Companies Road, Mostorod, Qalyubia governorate, Egypt (https://goo.gl/maps/8yrvVd26Mbm). The plant is surrounded by many petroleum companies and a small residential area, which is separated from the plant border by an emergency road for the petroleum companies in the area.  MEG Sadat plant started operation in 2007 as Wadi Glass. MEG acquired the company in 2014. The plant includes two regenerative furnaces and 7 production lines. One of the furnaces  was installed in 2010, and the other is in the process of refurbishment and is expected to start operation in August 2018. The annual production capacity of the plant with the two furnaces operating is 71 thousand tons and it produces flint and amber containers. The plant is in Sadat industrial area, Menofeya governorate, Egypt (https://goo.gl/maps/74umMG1EQwG2).  The cullet processing unit that serves the three plants is located within the premises of MEG plant in Nasr City, Cairo.  Upgrade and automation of some of the processes within this unit is planned as part of the proposed project. The company had acquired 60% stake in Medcoplast, a company specializing in PET packaging in 2011, and is currently in the process of divesting. This facility will therefore will not be a part of IFC investment.