Diversified financial services company Dubai Group – part of Dubai Holding – has acquired a 49 per cent stake in Egypt's Sphinx Glass in partnership with Cairo-based private equity firm Citadel Capital.
Dubai Group invested Dh730 million through its Dubai Capital Group subsidiary to become the second largest shareholder in the greenfield project 70km north of Cairo.
Sphinx Glass's plant will produce 220,000 tonnes of float glass annually and will target both domestic and export markets. Sheets of float glass are made by floating molten glass on a layer of molten tin.
Sphinx Glass is a subsidiary of GlassWorks, a company set up by Citadel Capital and a group of leading regional investors to pursue investments in the glass industry in the Middle East and North Africa (Mena).
"Dubai Capital Group aims to own and build a strong portfolio of firms by concentrating on private equity, growth capital, greenfield investments and long-term public equity holdings," said CEO Mustafa Farid Geninah. "Our investment in the Sphinx Glass plant reflects our belief in Egypt's competitive advantage in the glass industry, not just within the region but also globally.
"Glass-making is a centuries-old industry in Egypt and the sector is currently growing at a rapid pace.
"Investing with Citadel Capital in Sphinx Glass puts us in an ideal position to capitalise on this growth and will provide sustainable returns for our shareholders as part of our diversified investment strategy. The plant will manufacture glass ranging in thickness from 2mm to 19mm primarily for use in the construction industry. It will use cutting-edge technology licensed from global leader PPG Industries.
Hisham El-Khazindar, Sphinx co-founder and Managing Director of Citadel Capital, said: "Mena's abundant access to fuel resources and sand, the primary raw materials for glassmaking, is allowing the region to become a strong global glass producer.