JUNE 2011
                                        

IFC invests in new paper mill

IFC, a member of the World Bank Group, is investing to complete the construction of El Motaheda S.A.E.’s new paper mill outside Cairo to reduce greenhouse gas emissions in Egypt.

IFC will invest up to $10 million in equity and provide a loan of up to $15.5 million toward completing the paper plant, which will be located in the Sadat City industrial zone. The plant is expected to use recycled fiber from local wastepaper as the main raw material to produce duplex board. The mill will create an estimated 300 direct manufacturing jobs and 550 indirect jobs through the collection and transport of wastepaper.

In addition, the availability of high-quality locally produced duplex will help replace imports and benefit domestic and regional consumer goods companies, local consumers, and the local economy by reducing costs.

Egypt produces an estimated 60,000 tons of solid waste each day, of which around 12,000 tons is paper, yet the country imports wastepaper and pulp for its paper product industries. The new mill and its domestic supply chain promise to significantly reduce the volume of discarded wastepaper and carbon emissions from its decay.