Abu Makarem: 20% decline in imports of chemical industries
Engineer: We aim to increase the local component of engineering industries to 80%
The two chambers of the engineering and chemical industries in the Federation of Egyptian Industries said that the companies started a journey to deepen local production instead of importing, in line with the states tendency to raise the percentage of the local component in all industrial sectors.
The government launched the National Program for the Enhancement of Industry in 2017, with the aim of increasing the local component of various industries and encouraging the national industry.
The program aims to increase the competitiveness of the Egyptian industry and deepen local industrialization by developing a diversified industrial base, maximizing the utilization of available productive capacities, raising the utilization rates of industrial investments, upgrading industrial knowledge and replacing imported production inputs with local ones.
The Ministry of Industry has launched the program on three main sectors: engineering, chemical and construction materials as a first stage, all of which are localizable industries, with the aim of finding locally produced products as a competitive and strong alternative to imported products, which account for 55% of imports and reduce imports from abroad. , And maximizing the utilization of available productive capacities.
In the first 5 months, imports of the chemical industries sector declined by 20% due to the tendency of importing companies to manufacture local products and benefit from national products, said Khalid Abu Malakarm, deputy of the Chemical Industries Chamber of the Federation. He added that fertilizers, glass containers and plastics are among the most declining sectors in imports .
He added that the chemical industry is based on the use of domestic raw resources to replace imported foreign products, pointing out the preparation of a new system that allows companies producing raw and processed materials to communicate with each other, linking all producers to reduce imports and increase competitiveness with foreign countries.
The council aims to reach 6.5 billion dollars in exports this year, compared with 5.3 billion dollars last year, and exports to the sector reach 13.3 billion dollars by the end of 2023.
Mohammed Al-Mohandes, Chairman of the Federations Engineering Industries Chamber, said: "The decline in the value of the dollar against the pound is the largest evidence of the progress of the program to deepen the local component correctly, which limited the import, pointing out that the latest customs statistics indicate a decline in imports of the engineering industries sector Sectors.
He added that the sector aims to increase the percentage of deepening the local component of engineering industries to 80% in 2019, compared to 72% in 2018 and 65% by the end of 2017.
He added that Egypt has a large and diversified industrial base capable of replacing many imports, which contributes directly to reducing the trade deficit and the provision of foreign exchange.