Corys Investments LLC has announced a joint-venture with GF Piping Systems.
The JV, in which 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.
Currently, Egypt is undergoing a major governmental initiative to develop its gas and water infrastructure.
In 2018, more than 1.3million households were connected to the network. According to Egyptian government forecasts, the plan is for a similar number to be connected to the gas distribution network each year.
Mohammed Abdulghaffar Hussain, CEO of Corys Investments Holding LLC, 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."
Together with GF, Corys will hold equally a combined stake of 75% in the new JV whilst Egypt Gas will hold 25%.
The company Egypt Gas was established in 1983 by the Egyptian government and was the first company in the field of natural gas networking.
Named Egypt Gas GF Corys Piping Systems S.A.E., the joint venture will set up a new production facility for plastic pipes and fabricated fittings for the domestic market near Cairo.
Commercial production is planned to start in 2021. The initial JV investment will amount to approximately $21million.
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.”