Increased Production Capacity and Export Rates for Piel Colour

Piel Colour
Menofia governorate, Egypt
Ash Removal, Staking and Vacuum Machines
Investment Size
USD 5,052,845
Energy savings
42,400 MWh per year
CO2 savings
8,930 tonnes per year

New stacking and vacuum machines save energy, increase production capacity, improve product quality and recycles waste.

Piel Color Co. is established in 1945 and is located in Mubarak industrial zone Qwesna City in Al Monufia Governorate, Egypt. Piel Colour Co. is one of the major leather exporters in Egypt, it exports its products to several European countries, Asian countries and United States of America. The group consists of two companies, Piel Color Co. and Union for Leather Company. Piel Color specializes in the first two processes of leather manufacturing, which are Wet blue and Crust processes while Union for Leather Co. specializes in the third process, which is the finishing process.

The company replaced the old staking and vacuum machines with machines that have a bigger area yield, which increases production capacity with the same power requirements. The company has also improved the gelatine production line by adding an additional step (Ash Removal), responsible for removing salts from the gelatine solution. This process will lead to eliminating significant thermal energy requirements, in addition to improving product quality which in turn increases the gelatine selling price.

The GEFF team performed the project analysis, assessed the potential of energy savings, financial-technical parameters and risks.

The USD 5,052,845 investment allowed the company to reduce the energy consumption by 42,400 MWh per year, resulting in the annual costs savings of USD 3,804,913. This means the investment will be repaid out of energy savings in 2 years, continuing to generate profit for many years to follow. 

The new equipment led to a reduction of the CO2 emissions by 8,930 tonnes per year, making a valuable input towards mitigation of negative effect of human activity on climate, also, by recycling the waste from the production process and reusing it in another production process.

GEFF Egypt was developed by the European Bank for Reconstruction and Development (EBRD) and is supported by the European Union Neighbourhood Investment Facility.