Egypt to build mega grain storage units
01 January 2015
The proposed integrated food security system for Egypt will be built at 93 sites across the country and annually process 3.7 million tonnes of wheat.
ONE of the world’s largest integrated food security systems for grain storage will be built in Egypt following a collaboration between the Egyptian government and the US-based Blumberg Grain, a leading global food security company.
The first phase of the new food security project covers 93 sites across Egypt, and enables primary processing of 3.7 million tonnes of wheat per year across a platform of 3.6 million sq ft of storage space.
Egypt is the largest purchaser of wheat in the world. The system will support the Ministry of Supply in recovering crops lost to post harvest losses, saving the country up to an estimated $200 million annually.
David Blumberg, CEO of Blumberg Grain – Africa, says: “This begins the implementation of the government’s vision for Egypt to become the food security centre of the Middle East. The project will transform the current barn storage infrastructure into a network of sophisticated warehouses with Blumberg Grain screening, drying and grading technologies, as well as our access and inventory management systems that will develop the platform for a commodities exchange in Egypt.”
Blumberg Grain has also announced that it intends to build a manufacturing plant and export hub to produce food security technology and systems including equipment and storage buildings for the Middle East and North Africa (Mena) region, and has several proposals from Mena nations, including Egypt, for its hub.
“Though the ongoing competition for our Mena manufacturing plant and hub has not concluded, this contract places Egypt in a good position to gain the manufacturing plant and a large portion of Blumberg Grain’s Mena region investment programme target of up to $250 million in processing and packaging facilities as well as high-yield farming,” explains Philip Blumberg, chairman and CEO,
“Though it’s been a challenge previously to execute investment programmes in Egypt, under President Sisi we are seeing a positive change in the attitude in government and the speed in implementing infrastructure projects to improve the Egyptian economy and create jobs. We hope to be one of the first major manufacturing investors in Egypt since the change in government,” he adds.
Christian Rath, the company’s head of Applied Engineering, says: “Blumberg Grain’s Mena manufacturing plant will be one of the largest of its kind, with a production capacity of 1,200 food storage buildings annually and the capability to manufacture food security equipment, both for the Egyptian market and for export of ‘Made in Egypt’ food storage systems throughout the Middle East.”
The Mena manufacturing plant will create 1,000 new jobs, as well as an economic impact estimated by KPMG at $1 billion in the first year, and $7 billion over five years. Furthermore, the plant will increase exports and utilise local content in the manufacturing process.
The Mena manufacturing plant will also include an agricultural institute to train farmers in techniques to raise crop yields and better secure and protect the quantity and quality of the harvest.
The selection of the location and ground breaking for the manufacturing plant is planned for early this year.
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