Siemens considers investing in the new administrative capital according to Emad Ghaly, CEO of the company during an interview his with Daily News Egypt. The company expects to complete the construction of the three power plants with a capacity of 14.4 MW in the first half (H1) of next year.
On the other hand, Ghaly revealed that the company in the process of inaugurating an energy service centre in Suez in New Suez Canal Development Zone (SCZone) in Ain Sokhna during next year, which will include a training centre and a centre for maintenance and repair of turbines for power plants and turbines for the gas and oil industry.
You signed an agreement with the Ministry of Trade and Industry to enable technology in some factories… Explain to us the most cooperative mechanisms according to the agreement?
The memorandum of understanding signed with H.E. Tarek Kabil, Minister of Trade and Industry, is based on 4 main axes. The first is to upgrade the training centre of the Ministry of Industry in accordance with the latest training standards, in addition to establishing other training centres in the industrial zones starting with the Robbiki Leather City in Cairo and the Furniture Cluster in Damietta in order to contribute to improving the efficiency and raise the efficiency of the Egyptian worker.
The second axis will be the supply of a number of digital industrial solutions to improve the industry and increase the efficiency of the manufacturing process. We will start to implement this after checking the factories and identifying, together with the Ministry of Industry, the technologies needed to provide them.
The third axis depends on the modernization and development of the control centres of each industrial zone to allow for the efficient use of resources such as so that the administration of the industrial zone to allow for the efficient use of resources such as, water, electricity and gas. This will help increase productivity and ensure a greater return on investment.
The fourth axis is related to training programs for various technical fields in order to create a pool of highly-skilled local workers to help build the country’s digital industrial ecosystem.
The collaboration also intends to place significant emphasis on small and medium-sized enterprises (SMEs) by providing them with a number of automation and data management tools and digital services to ensure greater return on investments, and help develop new business models.
The launch of this collaboration is expected to begin in the two cities of Roubiki leather city in Cairo and Damietta for furniture. Siemens solutions will cover the areas of planning, industrial data security and integrated systems to manage production processes as well as energy efficiency solutions.
Who will be responsible for the training, is it you or cedars from the ministry of industry?
We will train the cadres of the Ministry of Industry in each industrial zone, starting with the Robbiki Leather City in Cairo and the Furniture Cluster in Damietta. Then we will put the main points of mechanization and development processes required by the factories of this area to increase the efficiency of the production process and help factories in the digital transformation.
What are the challenges you may face while implementing this process?
We aim to achieve these four axes, and we know that there might be challenges that will face us, but we are working to overcome these challenges.
One of these challenges is the trained workforce to be able to run this technology smoothly and realize the full benefits of the digital transformation.
Another challenge is that some see manufacturing as a problem, but fear that they will rely on technology because of their fear of cost and lack of knowledge.
The third challenge is easier because the person in charge knows that there is a problem and its solution is reliance on technology and digital transformation, but he does not know how to do it.
Has the final implementation mechanisms of this agreement been reached?
According to the memorandum of understanding signed with the Ministry of Industry, Siemens will be the technology partner of the Ministry in the development of industrial zones. We have already started to visit the factories to identify their problems and the challenges they face and the mechanisms to raise their efficiency to identify the technologies they need.
In cooperation with the Ministry of Industry, we have developed a vision for the technological needs of these factories, to begin implementation in the next few days.
According to our vision, we will provide solutions for automation, software solutions for the management of factory resources and manufacturing steps, and software for simulating the manufacturing process in virtual reality to bring out the product with the best quality for its practical implementation.
How does your company see the Egyptian economy today and the future of your investments in the Egyptian market?
We have been in the Egyptian market for 116 years, and the first project we carried out was in 1859 and we’ve been here ever since..Therefore, we are an established part of society; and we are familiar with the regulations and market conditions that apply in Egypt.
Egypt is now resolutely setting the course for sustained development and economic growth. And as strong manufacturing sector is linked to strong economy, we are working to support the country’s industrial sector, helping local manufacturers harness new digital solutions to increase their efficiency, flexibility, quality and reduce time to market.
The government during the past period has taken some steps to create the investment climate… What are the needs that the investment climate currently needs from your point of view?
Egypt provides very good investment opportunities and the country is developing fast. With its young population and its geopolitical and economic significance as a hub between Asia and Africa, Egypt has all the prerequisites for achieving economic development. Equally important, we are seeing an ever-increasing efforts and support from the government to attract foreign investments.
We need now to promote these measures and reforms in the international markets of investment, using the same language of these markets, and not only rely on the Egyptian media to encourage investors to come to Egypt..
Meetings should also be held with the targeted leading investors targeted to present these economic reforms to them.
There is a government move to digitalize all government services.
This approach will have a ripple effect on attracting more investors to Egypt.
Do you have any solutions for smart cities? Is there an intention to present these solutions to the new administrative capital?
We are already in contact with the respective authorities in the new administrative capital to present the technological solutions that we can implement in the new administrative capital such as, building management solutions, energy efficiency, transport systems across the city.
What are the main axes of your strategy during the coming period?
The volume of our business during the last two years has increased significantly and we have achieved the largest volume of business in our history in Egypt following the signing of the contract for power stations worth €6bn. We plan to hand over the three stations with a capacity of 14.4 MW by the end of next year.
In addition, we aim to complete the construction of our modern service centre in Ain Sukhna within the SCZone. The gas and steam turbines and the heaters will be maintained and repaired, whether used in power stations or used in the oil gas industry.
Furthermore, we are joining forces with the Economic Cooperation and Development to support occupational training in Egypt through building a training centre. The centre which will be completed by next year is expected to train around 5,500 Egyptians over the next four years
Also, we currently have three agreements with three governmental universities, which are Alexandria, Cairo and Ain Shams universities, to provide them with digital software. We also have a plan to train technical school students starting next October. We chose an industrial school and a number of institutes to develop their training and technical education.