Chamber of Metallurgical Industries agrees with NBE to finance casting factories

Daily News Egypt
3 Min Read

The Chamber of Metallurgical Industries (CIB) headed by Emad Al-Alfy, and the Foundries Division headed by Omar Abdel Aziz, agreed with the National Bank of Egypt (NBE) to provide the necessary financing to modernize casting factories in different regions at a decreasing interest rate of 5%.

This comes in implementation of President Abdel Fattah Al-Sisi’s initiative to support the industrial sector to enhance its pivotal role in achieving targeted economic growth and reinforcing local industrialization.

Omar Abdel Aziz, head of the Foundries Division, said in a press statement today that the bank will work to provide the necessary support to finance casting factories wishing to develop machines and equipment to operate on electricity instead of coal and diesel. This comes within the framework of the Central Bank of Egypt’s (CBE) initiative to modernize the industry at a decreasing price return of 5% annually, according to the initiative of President El-Sisi to support small projects.

He pointed out that the cost of environmentally friendly foundry melting furnaces exceeds about EGP 500,000 per furnace, which is a huge cost for factories and workshops at this point, especially that each of them needs many furnaces. This prompted the division to resort to the banking sector to benefit from the initiative to support the local industry.

He explained that the owners of foundries are scheduled to start directing their requests to the bank during the next few days to start the procedures for obtaining the necessary financing, which helps to include unlicensed foundries in the official system.

Abdel Aziz added that the documents required to benefit from the initiative to finance equipment and furnaces for foundries include a lease or ownership contract that covers the financing period, a tax card, a basic data document for the taxpayer from the tax authority, a recent extract from the commercial register, and the capital in the register is not less than EGP 50,000, and the insurance status, a recent insurance invoice, operating license if available, accompanying receipt to the activity location, a copy of the customer’s national ID card, and a price offer for the required equipment, whether furnaces or filters.

He pointed out that qualifying foundries to convert to work with electricity is in the direction of achieving sustainability, green economy and reducing carbon emissions, in line with the recommendations of the COP27 climate summit that was held in Sharm El-Sheikh.

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