Egypt, Siemens agreements worth 2.2 billion in Telecom, pharmaceutical, chemicals

Egypt's Prime Minister Atef Ebeid met yesterday with Heinrich V. Pierer, President and CEO of Siemens AG, one of the world's largest electrical, engineering and electronics companies.

ÊÊÊ The Minister of Communications and Information Technology (MCIT), Ahmed Nazif and the German Ambassador in Cairo, Baron Paul Von Maltzahn also attended the meeting.

ÊÊÊ Following the meeting Ebeid attended the signing ceremony of two contracts between Siemens and the MCIT and Telecom Egypt that will make a significant contribution to the telecommunications, pharmaceutical and chemical industries.

ÊÊÊ In the first agreement, Siemens committed to expand its Information and Communications Network (ICN) platform of operation, including service and training centers and regional activities.

ÊÊÊ Total investments resulting from this agreement are estimated at LE2.2 billion. Siemens is committed to invest 150 million euros.

ÊÊÊ This agreement will be carried out through two protocols with the Ministry of Communications and Information Technology.

ÊÊÊ The second agreement, signed with Egypt's HEBI company to invest LE1.1 billion (250 million euros) for the design, construction and commissioning of a new multipurpose plant for the production of pharmaceutical and petrochemical raw materials and products in Upper Egypt's Qena Free Zone, Luxor.

ÊÊÊ The project will be implemented in phases from 2003 to 2005.

"I came to Egypt at this difficult time to renew the 100-year-old commitment Siemens has to one of our oldest companies outside of Germany," Pierer said following the signing ceremony.

ÊÊÊ "Siemens are continuing to invest in Egypt in three important areas: the transfer of technology, the training and development of Egyptian employees, and the growth of the export business.

ÊÊÊ "The contracts we are signing contribute to each of these areas", said Pierer, who arrived on Sunday and expressed the strong support for German business in Egypt.

ÊÊÊ "2OO1 and 2OO2 have been extremely tough years - for most economies and most companies, but Siemens is confident that three elements in the global businesses help economies: innovative technology, true global, and social responsibility" Pierer told a business gathering.

ÊÊÊ Siemens' activities in Egypt reflect its deep and lasting commitment to these three elements, said Pierer, indicating that his company supplied over 4O per cent of the installed and operating thermal-power plants in Egypt.

ÊÊÊ Pierer paid tribute to the performance of the Egyptian-German Telecommunications Industries (EGTI),a joint venture with Telecom Egypt and the National Bank, which has installed over 3 million EWSD telephone lines in the country.

ÊÊÊ "Siemens also cooperated with Egyptian partners to install 1O gigabit/second fiber optic SDH equipment, which helped Egypt to be the first country in the Middle East and North Africa (MENA) to have ultra high-speed transmission networks," he continued.

ÊÊÊ Pierer expressed his optimism about the investment climate in the MENA region. Some signs are very encouraging. Business has grown roughly 20 per cent in the region in the past nine months. Siemens is growing faster than the general economy here in Egypt, despite some current difficulties.

ÊÊÊ Pierer was appointed as Honorary President of the German-Arab Chamber of Industry and Commerce in a large celebration attended by senior officials and businessmen.

ÊÊÊ GACIC honored Pierer in recognition of his services to enhance bilateral economic ties and in honor of the outstanding role and activities of Siemens AG in Egypt and the Middle East region, GACIC Executive Director, Peter Goephrich said.

ÊÊÊ Siemens opened its first office in Cairo over a century ago and has progressed from being a supplier of German equipment to the roles of systems integrator, turnkey contractor and project manager.