Despite the boom in the World Wide Web, where electronic media prevails, the paper industry continues to flourish. Demand for paper and paperboards are persisting leading to increased consumption of raw materials. Today, paper manufacturing companies are adopting new and advanced techniques in accordance with globalization. Embracing an efficient financial management system while implementing better operating procedures help paper manufactures thrive long in this industry. 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 by almost 2/3 from imports and 1/3 from domestic sources. The main suppliers are Europe, Canada, USA, and the Far East. Paper and paperboard are subject to 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 Euro Med Association Agreement, which decreases tariffs on imported paper and paperboard vis-à-vis 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 a little more than 1/3 of its paper and pulp, including all tissue paper of which it exports to the Gulf and Arab countries. Egypt also produces 1/3 of its pulp, which caused a similar drop in imports. This occurred, when the government built two factories (Edfu and Qena) both are audited by Crowe Egypt. In the last 10 years, Egypt produced 1/3 of its thriving printing and writing paper market. Despite the existence of paper mills and a growing paper-converting industry in Egypt, the country imports 2/3 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 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.