The International Finance Corporation (IFC) announced a financing package, on Tuesday, for leading glassware manufacturer Pasabahce Egypt for Glass Manufacturing, to help the company boost exports, introduce cleaner production practices, and create jobs.
IFC’s support will help Pasabahce Egypt upgrade its glassware production facility outside Cairo, and introduce efficiencies to cut its natural gas and electricity consumption by more than half.
The funding is also expected to allow the company to create about 330 new direct jobs in engineering, production, and quality control, and more than 1,500 indirect jobs.
Pasabahce Egypt is a subsidiary of the Sisecam Group. Its factory mainly serves markets in the Middle East, Turkey, and the US.
The $30m financing package from the IFC, a member of the World Bank Group, includes a long-term loan of up to $20m and a shorter-term loan of $10m. The entity’s support comes at a critical time when the novel coronavirus (COVID-19) pandemic has disrupted global supply chains and production, and dampened consumer confidence and demand.
Ahmet Kirman, Vice President and CEO of Sisecam Group, said, “The IFC’s support and financing will help us expand into the region with an upgraded production facility complemented with increased capacity, and higher value-added production.”
He added, “It will also increase the availability of high-quality glass production in Egypt, while promoting cleaner, more efficient production practices.”
For his part, Walid Labadi, IFC Country Manager for Egypt, Libya, and Yemen said, “This project with our long-term partner Sisecam Group reflects IFC’s continued and deepening commitment to Egypt’s private sector as it navigates the COVID-19 pandemic.”
Labadi also said, “Manufacturing companies like Pasabahce Egypt, that provide stable jobs, are key to ensuring long-term, inclusive economic growth in Egypt.”
The IFC has been increasing its support to Egypt’s manufacturing sector, helping improve efficiencies, support innovations, and replenish working capital. It has invested about $340m in the sector in the past several years.
Over the past five years, manufacturing has accounted for over half of Egypt’s exports and about 17% of its GDP. It is the country’s second largest employer after the services sector.
Pasabahce Egypt is part of Turkey’s Sisecam Group, one of the world’s leading glass producers. The IFC has supported the Group for over 50 years as it expanded regionally across Eastern and Southern Europe, Central Asia, and the Middle East. This is IFC’s first investment with the Sisecam Group in Egypt.