Time：

2022-07-05

According to the Egyptian Stock Exchange, the proportion of local ingredients in Egyptian sanitary ware ranges from 65% to 70%, mainly in finished products. The maturity of the industrial chain is low, and there is a lack of professional supply of raw materials and core accessories. These include professional parts factories such as nickel plating factories, rubber gaskets, valve cores, etc. Most of these required functions are imported from China. Therefore, for multinational companies that invest directly, the localized procurement of raw material factories such as PVC and PPR is also a big problem. At present, Duravit and Hansgrohe have achieved localized production in Egypt. Duravit is the first German sanitary ware company to enter the Egyptian market and currently has two production plants for ceramics and acrylic. Hansgrohe will officially enter the manufacturing process in 2022. In May 2022, Hansgrohe launched its first factory in cooperation with the local Egyptian company Sunnypure Industry. It mainly produces hardware accessories. It covers an area of ​​80,000 square meters and has a production capacity of nearly 2 million pieces. The investment is expected to exceed 1 billion Egyptian pounds. In the past five years, Egyptian import companies have begun to transform into independent manufacturing, including some traders who once specialized in importing Chinese sanitary ware. It is expected that the next step to realize the independent production of key accessories is the core of the transformation of the Egyptian sanitary ware industry. And Chinese investors have also begun to negotiate with the relevant Egyptian authorities on direct investment. According to reports from Egypt today, in 2021, the Sanitary Department of the Egyptian Federation of Industry will negotiate with Chinese-funded enterprises to build showers in five areas including Ramadan 10th City, Alexandria City, Beni Suef, Abrawash, and the Fifth Settlement. , faucets, water tanks and other 5 bathroom and accessories factories. It is reported that if the negotiations are successful, the import of some bathroom accessories will be restricted, and the manufacturing expertise will be transferred to the local market. At the same time, in 2022 Egypt announced the relaxation of investment targets in several sectors. On June 13, Egyptian Prime Minister Madbouli said that on the basis of learning from the experience of more than 30 countries, Egypt has drafted the "State-owned Policy Document" after 7 months of research. After the official implementation of the document, the share of the private sector in overall economic activity will increase from 30% to 65%. This move aims to promote economic development and achieve the goal of 7% economic growth. At present, the income brought by Egypt's state-owned assets contributes 50% to GDP. According to the plan, Egypt will completely withdraw from 79 industries within three years, reduce investment in 45 industries, and increase investment in 27 industries without excluding the private sector. In addition, Egypt is also tightening import indicators. The existing methods include the evolution of import substitution for bathroom and household faucets; and from March 2022, Egyptian importers need to use letters of credit for imports.