Meeting on Solving Leather Industry in Egypt

Prime Minister, Dr. Kamal Al-Ganzoury, held meeting with head of the leather tanning chamber and members of the chamber, in attendance of the Minister of Industry. The meeting tackled problems of the leather industry in Egypt, especially determining price of the land meter in the industrial zone in Al-Rubeky area. Dr. Al-Ganzoury approved to price of the land meter in Al-Rubeky to be EGP 300 instead of EGP 682. This comes as respond to demand of owners of the tanneries to reduce the land meter price. Dr. Al-Ganzoury delegated the Minister of Industry to discuss all demands of the tanneries’ owners and employees in such industry especially the land meter price.

Dr. Al-Ganzoury has also delegated the Ministry of Industry and the Chamber Head to immediately carry executive procedures for transferring the tanneries from the current place in Magra Al-Ouen to the new location. A meeting will be held by the coming Thursday to follow-up on such issue and determine number of tanneries’ owners, as well as determining number of constructions and industrial sewage stations to be operated as soon as possible. An executive plan will be set for providing houses for employees and completing constructions. Another meeting will be held with Cairo Governor to provide 20,000 housing units in Badr City for employees to move to Al-Rubeky, along to extending transport lines therein.

Head of the Chamber stated that the project reached its final phases, and the societal security rates for owners of tanneries and employees were provided upon series of executive meetings held by the government recently. It was agreed on establishing mega automated slaughter houses therein to provide leathers with global standards, and provide meats for Egyptians with health standards. It was agreed that Cairo governorate would obtain half price of the land, and the other part for the Industry Ministry to compensate tanneries’ owners. Owners are allowed to substitute the land meter price in its origin construction by the meter price in the new project. As for Magra Al-Ouen wall, Amr Bin Al-Ass Mosque, and the hanging church there is plan to get use of them as tourism places in cooperation with Cairo governorate and ministries of tourism and culture.

Head of the Industrial Development Authority stated that implementation of the project will be taken in coordination with Cairo governorate for provision of 10,000 housing units until determining number of employees. The government gives priority and supports such industry which Egypt enjoys since thousands years, and working to solve problems they face especially that the project is linking to the raw leather export, and leather products import which did not meet standards. The Ministry of Industry issued decree no. 304 of 2011 banning exportation of raw leather aiming to protect the local product and export it with higher prices, as well as issuing decree no. 660 to control leather importation.

The Chamber Head thanked the prime minister and the government for paying attention to leather industry, confirming the that government issued decrees banning exportation of leather and importation of bad leather aiming to product the leather industry in Egypt and people’s health. It is worth noting that leather tanning and manufacturing in Fom Al-Khaleg composes 560 factories are ready to move to Al-Rubeky area especially upon facilities provided by the government including infrastructure, roads, transportation, and determining appropriate prices for lands therein.