Ahmed Shaaban, CEO of Simplex for Industrial Solutions and Software, has announced the launch of a new computer numerical controlled (CNC) machine factory on an area of 5,000 sqm in the Industrial Zone of the 10th of Ramadan City.
CNC machines are used to facilitate manufacturing operations in various fields of industry by cutting, drilling, bending and piercing metallic and non-metallic materials such as wood and marble.
Shaaban added, in a press conference attended by Daily News Egypt, that the company has an ambitious plan to increase production rates of CNC machines with investments of EGP 100m to meet the needs of the local market and export to neighbouring countries.
“The company attaches great importance to expanding into new listed markets by taking advantage of international agreements with Egypt, in light of the customs regulations and clauses that stipulate exempting Egyptian products from collecting customs duties and allowing entry to them,” he said, explaining that Simplex aims to expand into 15 countries over the next three years.
He added that Simplex aims to export from 35% to 40% of its production capacity for CNC numerical control machines manufactured locally.
He pointed out that the company is betting on external expansion while increasing the competitive factor with other markets and seeking to promote locally-made products in foreign markets. This is due to their lower prices compared to those imported from China, which are imported at high costs.
“The African markets represent promising investment opportunities for local manufacturers in the marketing of digital control machines, especially with the increase in demand for such equipment during the past year, which amounted to $2.2bn, according to IDC,” Shaaban said.
He added that the company seeks to localize the CNC machine industry through joint cooperation also with some major industrial bodies and institutions in light of the expansion of local manufacturing projects and the possibility of creating new export opportunities, explaining that the last period witnessed discussions with the Arab Organization for Industrialization to exploit its production lines and work to manufacture some equipment to meet the requirements of the Egyptian market and export abroad.
Simplex Company for Industrial Solutions and Software was established in 2013, after graduating from one of the incubation courses for the Flat6 Lab business accelerator. It is also the only certified machine manufacturer in the Middle East for Schneider Electric.