Al Alamia Plastic Industries was planning to expand its current production capabilities by investing in nine new injection moulding machines, using modern and higher performance technology to increase its competitiveness through enhanced productivity. The new machines will help the company increase its profitability through saving operational expenses resulting from improved energy efficiency, as well as, increasing competitiveness resulting from improved product quality and production output.
Al Alamia Plastic Industries is an Egyptian SME specialized in producing a wide range of plastic containers in terms of shape and volume, and sells its products to clients and food processing businesses in both local and export markets. Its main clients in the local market are Harvest foods, Halwani Bros Co. and Egyptian European Co. for Food Productions. The company currently employees 38 employees, with 5% of its workforce being females.
The company was aiming to restructure its production capacity by adding nine new injection moulding machines using the latest energy saving technologies. This investment would help the company enhance its profitability through achieving a 20% increase in productivity and a decrease in operational costs resulting from energy savings. Alalamia is also able to increase its competitiveness as a result of the higher product quality and production output that the new technologies deliver.
The GVC facility is providing financing for Al Alamia’s investment in the new technology which will enable the company to improve the final product quality and production output and save operational costs. The GVC team provided technical assistance in the selection of the high-performance technology that can support improvements in product quality and operational performance and boost sales growth and the company’s competitiveness. The investment incentive provided under the facility has encouraged the company to invest in best-in-class technology that will help enhance the company’s profitability.
The investment of US$ 445,714 is expected to increase the company’s production capacity by 20%, resulting in a simple payback period of 5 years. The company will be able to save 43% (166 MWh/year) of its annual energy consumption and GHG emissions reduction of 27 tCO2eq/year.
Egypt Green Value Chain Financing Facility was developed by the European Bank for Reconstruction and Development (EBRD) and is financially supported by the Green Climate Fund (GCF), the European Union (EU) and the EBRD Shareholder Special Fund (SSF).
The Sub-borrowers receive an investment incentive for successful project implementation, provided by a grant from the EU.
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