Project Description

The objective of the project is to construct a new glass container plant in the 10th of Ramadan Industrial Zone with a total capacity of 84,000 tons per year. The plant will consist of two furnaces with their complete production lines and accessories. One furnace will be dedicated to producing pharmaceutical containers and the other to produce food and beverage containers.

Project Sponsors

The Glass Containers Company (GCC) was established in May 2001 as a joint stock company under the Investment Incentive Guarantee Law No. 8 of 1997, with the objective of the production of, and trading in, glass containers and bottles used for packaging purposes by the pharmaceutical, food, and beverage industries. The Company's authorized capital is L.E. 200 million. Present paid-in capital is L.E. 15 million divided into 150 thousand shares with a par value of L.E.100 per share. The company expects to raise the issued capital to L.E. 150 million from local and regional sources through a private placement.

Project Location

The new plant will be located in the 10th of Ramadan Industrial Zone.

Project Cost

Total project cost is estimated at US$63.1 million

ICD's Role and Developmental Impact

Egypt has a strong comparative advantage in becoming a leader in the glass industry in the MENA region. This is due to the high quality and abundance of the main raw material e.g. sand, and the low production costs. In addition, this project is a good opportunity for ICD to fulfill its mandate of promoting Islamic finance. By being part of the founding shareholders with 15% stake, ICD plays a role of structuring the debt financing for the new Company to be in compliance with Sharia'a.