Following Its Expansion Plan, BariQ Takes New Steps To Enter The Egyptian Market
The Chairperson and Managing Director of BariQ, Osama Zaki:
- The company aims to launch three new production lines for BariQ’s manufacturer with the same productivity efficiency.
- In order to encourage the recycling investment in Egypt, BariQ demands the facilitation to procedures of releasing imported shipments.
- BariQ imports 50% of its plastic wastes requirements from abroad with Spain being the main supplier.
- 60% of BariQ’s productions are exported to Europe with the rest being shipped to the USA.
- BariQ received requests to import from Australia with few steps away from sealing the deals.
- Within only four years, the value of the factory’s electric consumption bill has been doubled over three times.
- BariQ is currently working on issuing legal licenses and approvals to finally penetrate the Egyptian market.
- Listing BariQ shares to the Egyptian Stock Exchange is unlikely due to the unstable market conditions.
- The Administration Control Authority shows full support in solving any problems facing investors in Egypt.
The first manufacturer of recycled polyethylene terephthalate (RPET) pellets in Egypt, BariQ, unveiled ambitious expansion plans which would kick off by building a new factory in 6th of October City. The Chairperson and Managing Director of BariQ, Osama Zaki, went over the details of their strategy which is supposed to be running over the next two years.
“The largest value of the investments will be directed to launching three new production lines for BariQ’s manufacturer with the same productivity efficiency of 150,000 tonnes of PET pellets per year,” Zaki said. “To smoothly carry out the company’s investment plan, we need to solve the problems with the importing process. However, the main obstacle is the need to submit a reliable analysis of the imported materials which is not possible as there is no official institution to rely on,” Zaki pointed out.
Nevertheless, Zaki mentioned that these obstacles haven’t only affected BariQ but also more than 10 other factories working in the manufacture of polyester fiber in the Egyptian market.
Therefore, Zaki has alluded to the role played by the Central Administration in supporting investments and exporting dynamics through the administrative control to ease the procedures. “The release of imported shipments takes more than a full month. All with the hefty charges of shipment containers in Customs,” Zaki mentioned.
The Chairperson and Managing Director of BariQ noted that they also face many obstacles with the collection of bottles from the local market due to the high prices, offered by local wastes collectors.
Thus, the factory imports 40% of its need for plastic bottles, which come from the rubbish, from abroad. Moreover, BariQ’s entire productions are exported abroad with 60% to Europe and 40% to the USA.
“The large number of importing requests import reflects BariQ’s high quality production. Despite the shipments’ problems, we received a recent request to import from Australia two months ago,” Zaki said.
Zaki pointed out that BariQ is on the final steps to enter the Egyptian market being in regular contact with the Egyptian Organization for Standardization and Quality Control (EOS) to start selling its productions locally. However, he ruled out the possibility of listing BariQ shares to the Egyptian Stock Exchange anytime soon due to the unstable circumstances of the market.
Moreover, Medhat Khalil, the Chairman of Raya Holding, BariQ’s parent company, mentioned that the placement of any subsidiary of Raya Holding in the EGX is unlikely due to the postponement of government propositions and the current state of the market.