Contract to establish first firm to produce giant oil pumps

A contract to establish an Egyptian-German company to produce heavy-duty oil-pumps according to international specifications was signed yesterday.

The contract was signed by the head of the Petroleum Authority, Ibrahim Saleh, and the chairman of Enppi Company Hani Saleh with Oil Minister, Sameh Fahmy and major general Sief Galal Suez Governor attending.

The new company's activities will include producing and maintaining all types of the pumps currently used in Egypt, said Sameh Fahmy, Minister of Oil, noting that the new company's factory will be the first plant of its kind in the Middle East.

It will be constructed in Suez governorate on a 20-feddan area with the first phase productive capacity of about 400 pumps annually.

The Minister revealed that the company would have a capital of six million euros, adding that the overall production would be implemented in four stages, increasing gradually to reach 39 percent of local production by the end of 2010.

The factory would create in its first phase approximately 180 job opportunities, with this eventually be raised to reach 300 new jobs, noted Fahmy.

The company is expected to achieve revenues of $20 million annually in addition to saving costs on imported pumps, Fahmy asserted.