The European Bank for Reconstruction and Development (EBRD) is providing a $25 million loan to finance the working capital of United Metals Company (UMC), an Egyptian manufacturer of copper rods.
“Supporting the development of the private sector in Egypt is one of the EBRD’s priorities. We are pleased to provide this important financing for the development of United Metals Company,” said Phil Bennett, EBRD First Vice President.
The EBRD promotes private and entrepreneurial initiatives towards an era of market-oriented economies. It is owned by 65 countries from five continents, the European Union and the European Investment Bank; each shareholder represented on the Bank’s Board of Governors.
UMC is one of the leading high quality copper rod producers in Egypt and North Africa.
It is a subsidiary of Elsewedy Electric, one of the largest cable and electrical product manufacturers in the Middle East and Africa operating out of 30 production facilities in 14 different countries.
Copper rod manufacturing is a vital industry for the Egyptian and the regional market with export markets including Algeria, Ethiopia and Lebanon.
Ahmed El Sewedy, CEO of Elsewedy Electric, expressed his company’s gratitude at obtaining the working capital financing adding, “We hope this will be the start of a long-term relationship between the EBRD and Elsewedy Electric.”
UMC will use the loan to purchase copper in international markets and to implement an environmental and social action plan which includes the purchase of modern equipment that will set new quality standards in Egypt’s wire and electrical products industry with the aim of reducing dust emissions from 24 milligrams per cubic metre to two to five milligrams per cubic metre by the end of 2018.
The EBRD started activities in Egypt in 2012, investing in sectors from financial, agribusiness to infrastructure and manufacturing and has to date invested more than €2.3 billion through 43 projects in the country.