A paper manufacturing company must be aware of the current trends of the business and practice efficient administrative policies to keep it functioning. Of late, more and more people are realizing the importance of implementing regional specific financial strategies.
Egypt’s paper market is supplied 78% from imports and 22% from domestic sources. The main suppliers are Europe, Canada, USA and the Far East. Paper and paperboard are subject to 2-12% customs duty, with higher duties in areas that are entirely covered by local production. Pulp, printing paper, test-liner, tissue paper and recycling paper are manufactured locally. Importing from Europe is more lucrative due to the EuroMed Association Agreement, which decreases tariffs on imported paper and paperboard vis-àvis importing from the U.S. However, due to the weaker US$ against the Euro, imports from the U.S. can be expected to increase.
Egypt manufactures 22% of its paper and pulp, including all tissue paper of which it exports 31% to the Gulf and Arab countries. Egypt also produces 31% of its pulp, which caused a 27% drop in imports. This occurred, when the government built two factories (Edfu and Qena). During 2007, Egypt produced 23% of its thriving printing and writing paper market. In spite of the existence of paper mills and a growing paper-converting industry in Egypt, the country imports 78% of its paper and paperboard requirements. There are three public sector paper mills in Egypt and production of tissue paper satisfies domestic market demand, plus 31% of production is exported to the Gulf countries.
At Crowe Horwath Dr. A. M. Hegazy & Co. we provide our audit, tax and other consulting services to major paper manufacturing companies in Egypt with billion of Egyptian pounds invested in those companies.