Italy and Egypt sign deal to establish leather district

25/10/2004

Italy and Egypt have signed two contracts outlining the establishment of an industrial leather district – Robaiky Leather District - near Cairo. The documents were agreed following discussions between the Egypt’s General Organisation for Industrial and Mining Projects (IMC) and Italy’s Association of Footwear, Leather

Goods and Tannery Machine Manufacturers (ASSOMAC).

 

As part of the agreement, ASSOMAC will provide technical assistance to the Robaiky Leather District at Badr El City, and will establish and operate the Technological Centre at the site, supporting private businesses in the area.

The project is part of the largest project in the district, with Italy allocating €21 million to the establishment of the area. The first installment of €500,000 will be allocated in the near future and will signal the official start of the project.

The new zone, about 45 kilometres from Cairo, is being set up in an attempt to improve the quality of Egypt’s processed leathers and leather goods and make the country competitive internationally.

 

It as also envisaged that established tanneries will move production to the new, environmentally-aware zone in order to reduce the pollution caused at the older sites. This transfer of business will take place in three stages over a six-year period.