In attempts to find a way out of the high cost of the industry, especially regarding the importation of machinery and equipment for the manufacturing process in various activities, especially after the liberalization of the exchange rate and the increase in the prices of imported equipment, manufacturers resorted to importing used machinery, especially from European countries, Industrial development of new machines, at prices of less than half for almost new machines.
Importers of used machinery and castings show any new machines stored in factories abroad, and their goods in exhibitions to attract buyers looking to run their factories at an appropriate quality and at a lower cost, with the high price of the dollar required for import, but also importers to manufacture parts of these machines and add value to them, In preparation for the transition to local manufacturing in full, but facing some difficulties, as revealed by a number of exhibitors at the exhibition of used machinery and castings held during the period from 28 to 30 March at the exhibition grounds.
Mohamed El Mohandes, head of the Engineering Industries Chamber, said for the seventh day that after the flotation, the prices of machines and equipment have increased so that many manufacturers can not update their production lines to keep pace with modern technology in the industry or start a new industrial project.
He added that the current direction of the State and the Chamber is focused on deepening domestic manufacturing and replacing the imported components with a local example, which requires encouraging the industry and providing the necessary machinery for the activity. This is called for the establishment of exhibitions for the sale of used and updated machines which operate efficiently similar to the new equipment, Some in terms of the degree of technology, but that is like a good solution to the price problem, where the machine used and updated from the new instance by about 50%.
The engineer said that the volume of demand for the purchase of used and updated machines increased further after the liberalization of the exchange rate, pointing out that most of the imports of these machines from Europe, especially Germany and Italy.
On the volume of import of used machinery, Mohammed Al-Menshawy, head of the machinery and equipment division of the Chamber of Engineering Industries said for the seventh day, that the actual volume of imports of used machinery can not be limited, especially as imports of these machines are imported as scrap.
Al-Menshawy pointed out that the manipulation of some importers by importing scrap from abroad in kilo and polishing it and selling it to factories as a machine hurts the Egyptian industry, especially when this kind of import is related to scrap used in food industries such as milk and juice concentrates, which causes great pollution.
Hazem Badair, Chairman of the Organization of Exhibitions Organization, said that the used machinery exhibition includes a large number of machines including maadi manufacturing machines, wood processing, plastic processing, packaging, welding tools and equipment, and handling equipment for the factory, storage and transport. Europe, pointing to the lack of Chinese competition in the field of imported machinery, where competing in new machines.
One of the most important problems presented by a group of exhibitors of modern used machines is that a number of them introduced local manufactured parts and carried out local modernization. Some started studying the engineering drawings of the imported machines and trying to manufacture a high quality Egyptian instance. However, they encountered obstacles related to the difficulty of obtaining licenses. Some of them were able to obtain industrial land easily, which hinders their transformation from importation to local industrialization.