State-run Arab Organization for Industrialization (AOI) and Benya Capital, a telecom and technology solutions provider, have joined forces to establish the largest fiber optic cable factory in Egypt and MENA at the Suez Canal Economic Zone (SCZone)in the Suez Canal Economic Zone (SCZ), Invest-Gate reports.
The 50,000-square-meter facility is expected to cost over EGP 1 bn and produce nearly 60 kilometer-worth of cables a year, Chairman of SCZone Yehia Zaki stressed during the signing ceremony on May 20, which saw the attendance of Minister of Trade and Industry Nevine Gamea, Benya Capital Chairman and CEO Ahmed Mekky, among other officials and dignitaries, according to a recent official statement.
Besides, Corning Incorporated, one of the world’s leading innovators in optical fiber, cable, and connectivity solutions, will support the project as a strategic supplier of optical fiber. This because it had invented the first low-loss optical fiber, which ultimately transformed the way the world creates, shares, and consumes information, the statement noted.
On his part, Mekky confirmed, “Experimental production of the factory is set to start in Q3 2021, utilizing up to 4 mn kilometers of optical fibers annually. This capacity is set to increase successively according to the company’s expansion plan and enabling Egypt’s transformation to one of the most important hubs for data storage and transmission.”
Abdelmonem Eltarras, chairman of the AOI, underscored the deal reaffirms Egypt’s directive and reflects AOI’s strategy to increase local manufacturing, embed the latest technologies, and reduce import in cooperation with international expertise. It will also create new jobs for young engineers and technicians, in addition to training opportunities on the latest technologies in line with the fourth industrial revolution.
Through this partnership, AOI targets the establishment of a national industry that meets local demand for advanced technological infrastructure for the communications networks, pushing for the development of smart cities in Egypt, Eltarras further stated.
According to Zaki, the new addition falls within the framework agreement signed by both parties last month to establish industrial parks in the SCZone. The cooperation with AOI will enable achieving sustainable development, attract local investments, and support the government’s vision for the economic zone as a global logistics center.