Engineer Ahmed Samir, Minister of Trade and Industry, announced that the Taiwanese Ritchie Company is in the process of establishing a project to produce an air-conditioning compressor in Egypt, in cooperation with the El-Araby Group, with a total investment of $33 million and a production capacity of 6 million compressors annually. Actual production is planned to start during 2024.
This came during the expanded meeting held by the Minister with the delegation of the Taiwanese Ritchie Company, which included Chen Sheng Tian, Chairman of the Board of Directors, and Feng Ming Fa, CEO of the company, in addition to Eng. Mohamed Mahmoud El-Araby, CEO of El-Araby Group, and Eng.
The minister said that the new project will be built in the industrial zone of Kom Abu Radi, Beni Suef Governorate, on an area of 60,000 square meters, noting that the project’s initial production volume is 2 million units, up to 6 million units within 5 years.
Samir added that the project aims to meet the needs of the local market and export 50% of the production to regional and international markets by taking advantage of the preferential advantages offered by free trade agreements signed between Egypt and a large number of countries and major economic blocs around the world, noting that the factory will produce an air-conditioning compressor with a capacity of 1.5-3 Horsepower The proportion of the local component in the final product is 50% at the beginning of production and will gradually increase.
The minister stressed the ministry’s keenness to attract international industrial companies to invest in the Egyptian market and contribute to the settlement of technological industries, while relying on raw materials and natural resources available in the Egyptian market.
For his part, Chen Sheng Tian, Chairman of the Board of Directors of the Taiwanese Ritchie Company, stressed the company’s keenness to invest and expand in the Egyptian market, as it is one of the main investment destinations in the Middle East region, which enjoys many investment advantages that include the possibilities of free access to products within the framework of free trade agreements and the low cost of shipping to the countries of the Union. In addition to the possibility of benefiting from the Suez Canal as one of the main shipping lanes in the world, noting that the parent company produces about 20 million units of air-conditioning compressor annually and ranks fourth among the largest compressor producers in global supply chains.
In turn, Eng. Mohamed Mahmoud El-Araby, CEO of El-Araby Group, explained that negotiations are currently underway with the Taiwanese company Ritchie to establish a number of projects in the Egyptian market in the fields of producing refrigerators and air-conditioning devices, noting that El-Araby Group will soon open a new factory specialized in the field of tin anatomy, which provides one The main production inputs for the home appliance industries in the group.