Construction works in the first phase of developing Al-Robeky city’s capacity for the manufactor of leather are undergoing, with the cost of the first phase totalling EGP 860m, Prime Minister Sherif Ismail said during his Tuesday visit to the city.
The completion of 300 production units, including workshops in the city is under construction, he said.
The statements were made during his visit to Al-Robeky city accompanied by the ministers of Industry, Housing, and Local Development, and the governor of Cairo.
The government’s plans to consolidate the infrastructure for leather manufacturing in Al-Robeky include transferring the leather tanneries, workshops, and factories that are currently located in Old Cairo to Al-Robeky, which is located 54km east of Cairo. The move to Al-Robkey city will address the current constraints on the leather manufacturing infrastructure in Cairo which are due to limited access to industrial facilities among other issues.
The Industrial Development Authority (IDA) has allocated EGP 330m of the FY 2015/2016 budget to accelerate the project.
Chairman of IDA Ismail Gaber indicated that EGP 200m of the allocated funds are earmarked for the construction of warehouses for the storage of tanned goods. The remaining EGP 130m will be allotted for the construction of industrial waste treatment plant that the Armed Forces-affiliated Engineering Corps is charged with building.
The phase of the establishment of warehouses is expected to be concluded in 2016.
The remaining funds whose implementation does not fall under the oversight of IDA will be used for general construction and labour costs.
The idea of consolidating leather manufacturing to one locale had existed before the 25 January Revolution in 2011 but the implementation started under the government of former prime minister Ibrahim Mehleb under President Al-Sisi’s administration.
The completion of the leather manufacturing capacity building in Al-Robeky city was among the priorities of the new Minister of Industry and Foreign Trade Tarek Qabil in addition to the completion of mega national projects, such as the Golden Triangle in the Suez Canal area and the consolidation of furniture construction in Damietta.
Qabil also promised to take measures to address issues facing the industrial sector, facilitating procedures to encourage, develop industrial investment, and boost the role of the industrial sector in the GDP.