Egypt wants new cluster to multiply leather exports by five

25/08/2017
Ahmed Al-Gabbas , the managing director of Al-Rowad tanning group in Egypt, has said the move of his company’s production facility to the new custom-built cluster at Roubiki will allow it to triple exports in one year.

In comments he gave to Reuters, Mr Al-Gabbas said Egyptian leather manufacturers have wanted to expand for years but have been restricted by their previous location in central Cairo. The new cluster is around 60 kilometres east of the city.

Al-Rowad has said it will complete the move to the new location before the end of September. It is one of a total of around 220 tanneries that will move to Roubiki, according to Egypt’s ministry of trade and industry. Working with Italian tanning machinery provider Italprogetti, the ministry is subsidising the cost of relocating the tanning equipment.

Egypt’s government has also said it will allow overseas investors to put money into production at Roubiki from 2018 onwards.

The ministry told Reuters it expects the Roubiki facility to propel Egypt’s leather industry to $1 billion per year in leather exports by 2020, compared to $200 million per year now.