Monday, Feb 19, 2007
BEIRUT (Zawya Dow Jones)--Cairo-based Al Arafa for Investments and Consultancies, or Arafa Holding, said it'll invest $100 million to set up industrial plants for textile production in Beni Suef area in Upper Egypt, 120 kilometers from Cairo.
"We have leased a land for a total area of 212,000 square meters on which there is an existing plant covering 35,000 square meters of land," Miranda Nabil, investor relations officer at Arafa Holding, told Zawya Dow Jones in an email.
Nabil said the 10-year lease contract with the government, which owns the 212,000 sq m land, will cost 17.5 million Egyptian pounds ($3 million).
She added that the firm will build new industrial facilities on 50% of the land to increase textile production.
"The existing building needs to be renovated and will cost EGP500 per square meter. Production will start from this building in January 2008 while total production capacity from all plants will start in 2011," she said.
She said Arafa Holding will have total turnover of $300 million in exports of garment and textile in 2011.
"This area will be in free zone for home textile products (bed sheets, casual garments, formal garments) and also with facilities for garments related trimmings (hangers, poly bags, cartons)," she said.
Arafa's revenues for 2006 topped $281 million with net income of $19 million, Egypt-based financial firm Prime Securities said in its initiation of coverage on Arafa Holding.
Established in 1989, Arafa Holding focuses on investments and management of textiles and garments companies.
-By Nadim Issa, Zawya Dow Jones, +961 1 985757, nadim@zawya.com
Copyright (c) 2007 ABQ Zawya Ltd.
(END) Dow Jones Newswires
19-02-07 0916GMT
