Corys Investments, the UAE family-owned business located in Dubai, has announced its new joint venture (JV) with GF Piping Systems, a division of GF, and Egypt Gas, listed on the Egyptian Stock market and the largest company for natural gas infrastructure in the Middle East.
The JV, in which Corys and GF will take the industrial lead, will invest in a major production site for plastic pipes to participate in the soaring Egyptian gas and water distribution market, said a statement.
Currently, Egypt is undergoing a major governmental initiative to develop its gas and water infrastructure. In 2018, more than 1.3 million households were connected to the network.
According to Egyptian government forecasts, the plan is for a similar number to be connected to the gas distribution network each year.
Corys, which was founded in 1977, has a strong heritage in the UAE and has a long-standing and trusted partnership with GF in the Middle East for more than 40 years.
Corys and GF have collaborated since the 1990’s to serve the regional market by selling a full range of products and services for the industry and utility segments.
Mohammed Abdulghaffar Hussain, CEO of Corys Investments Holding, said: “Since its inception, we have been committed to provide best-in-class solutions to customers that address the environmental challenges of the UAE and the wider Middle East.”
“Our companies have shared a close relationship for many years now. With this new strategic joint venture, we look forward to continuing our partnership and combining our technical capabilities to serve our existing and new customers in Egypt even better,” he said.
Together with GF, Corys will hold equally a combined stake of 75 per cent in the new JV whilst Egypt Gas will hold 25 per cent. The company Egypt Gas was established in 1983 by the Egyptian government and was the first company in the field of natural gas networking.
Named Egypt Gas GF Corys Piping Systems S.A.E., the joint venture will set up a new production facility for plastic pipes and fabricated fittings for the domestic market near Cairo. Commercial production is planned to start in 2021. The initial JV investment will amount to approx. Dh80 million ($21.78 million) in total, said a statement.
Andreas Müller, CEO of GF, said: “By expanding its global footprint to Egypt, GF Piping Systems is taking another step in the implementation of its strategy 2020. Together with the expertise of our partners, we plan to strengthen our presence and bring our know-how of sustainable solutions for the safe transport of water and gas to the Egyptian market.”
Wael A Gowayed, chairman and delegated member of Egypt Gas, said: “Egypt offers great investment opportunities. The most significant of these is the establishment of many new cities with huge utility networks in which Egypt Gas Company is involved.”
“Therefore, the idea of this joint venture makes a lot sense and is beneficial. It is an important achievement, and I am absolutely delighted and very proud of it,” Gowayed added.
The signing of the JV transaction has already been announced with the closing anticipated for the first quarter of 2020.
GF Piping Systems is a leading supplier of piping systems made of plastics and metal. The division focuses on system solutions and high-quality components for the safe transport of water, chemicals and gases, as well as corresponding services. The product portfolio of fittings, valves, pipes, automation, and jointing technologies covers all applications of the water cycle, it stated.