(MENAFN- Daily News Egypt) Prime Minister Mostafa Madbouly witnessed the signing ceremony of a project agreement between Siraj Lightening and VESRA MEA LLC-FZ, licensed by Honeywell to manufacture Honeywell lighting products, covering commercial, residential, industrial, outdoor, and indoor lighting at the government headquarters in New Administrative Capital.
The project will be established within the Orascom industrial parks' area in the integrated Sokhna Industrial Zone, part of the Suez Canal Economic Zone (SCZONE), in the presence of Walid Gamal El-Din, Chairperson of SCZONE.
The contract was signed by Youssef Nabil, CEO and Managing Director of Siraj Lightening, and Ibrahim Abdallah, Managing Director of VESRA, in the presence of representatives from both companies: Nabil Youssef, Chairperson of Siraj Lightening, and Leticia Lopez Garcia, Honeywell International's Director of Business Development, Operations, and Global Licensing.
This contract enables the production of“Honeywell lighting” products at the Siraj Industrial factory in the Suez Canal Economic Zone, with a total investment of $15m and a production capacity of 2 million lighting units within the Siraj factory, located on a 3,700-square-meter area in the Sokhna Industrial Zone.
In its first phase, the project aims to produce a variety of indoor and outdoor lighting units for residential, industrial, and service purposes, with a plan to export 30% of the production to several countries worldwide, including North and East African countries and the Middle East. At the same time, 70% of the production will be supplied to the local market to reduce import costs and provide Egyptian citizens with a high-quality product bearing the“Made in Egypt” label.
The Prime Minister emphasized the opportunity available to VESRA to benefit from the significant potential of the Egyptian market by manufacturing high-quality local products that can compete in regional and global markets. This contributes to strengthening Egypt's position as a regional manufacturing hub and creates new opportunities to expand international trade, supporting economic growth and increasing exports.
Madbouly also noted that this investment significantly enhances the local economy by creating new job opportunities for Egyptian youth, thereby increasing the country's production capacity through local manufacturing.
He highlighted that building strategic partnerships with a global leader like Honeywell aims to support and promote national initiatives focused on energy efficiency and reducing consumption, which benefits the national economy and society.
Walid Gamal El-Din, Chairperson of the Suez Canal Economic Zone, stated that this signing aligns with the authority's commitment to achieving national goals by supporting Egyptian exports through cooperation with major global brands to expand their activities in regional and international markets. He noted that collaboration with new foreign investments and strategic alliances has attracted numerous investors to inject capital that strengthens the Egyptian economy, emphasizing that the Suez Canal Economic Zone has become the ideal destination for international economic cooperation. He added that efforts to localize industry and reduce the import bill are top priorities in the investment attraction strategy.
He also affirmed the SCZONE's efforts to remove any obstacles by working to provide all necessary facilities to ensure smooth production and operations, thereby enabling the project to achieve its investment goals and strengthen cooperation with foreign partnerships.
Ibrahim Abdallah, Managing Director of VESRA, and Leticia Lopez Garcia, Director of Business Development, Operations, and Global Licensing at Honeywell, explained that the partnership between Siraj Lightening and VESRA aims to develop and manufacture lighting products that meet global standards and focus on improving energy efficiency in line with Egypt's national goals for environmental sustainability and energy conservation.
They pointed out that the partners are working closely with the Egyptian government to achieve these shared goals, improve quality of life and promote sustainability. This investment, in collaboration with the Egyptian partner, aims to inject new investments to enhance the factory's capabilities in Egypt, equipping it with the latest machinery and equipment according to approved international standards. This ensures the production of high-quality products that meet global market standards and supports sustainable development in Egypt.
Nabil Youssef, Chairperson of Siraj Lightening, praised the steps currently taken by the government to support industry, advance local manufacturing, and attract new foreign investments to the Egyptian market.
He added that the company's future expansion plans, through its current investments in Egypt via the proposed joint industrial project, will increase the use of local raw materials in manufacturing its products and introduce new lines and a variety of products to localize the lighting industry. These efforts contribute to meeting the needs of local and regional markets and developing high-quality, innovative products that meet international standards and technological advancements. This aims to support the local economy, reduce reliance on imports, and maximize local production, aligning with Siraj.
He further added that the company's future expansion plans, through its current investments in Egypt via the proposed joint industrial project, will increase the use of local raw materials in the production of its products. It will introduce new production lines and a variety of products, ensuring the localization of the lighting industry. These efforts help meet the needs of local and regional markets while developing high-quality, innovative products that comply with international standards and keep pace with technological advancements. All of this aims to support the local economy, reduce reliance on imports, and maximize local production, aligning with Siraj Lightening's plans to localise the production of lighting units and LED technology.
Youssef concluded that the company has completed the first and second phases of its factory construction and will soon begin building the third phase.
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