Robbiki Leather City

- In the heart of an industrial complex, an hour away from Cairo
- On Robbiki / 10th of Ramadan City road
- 54 km away from Cairo (Cairo / Suez Road)
- 60 km away from Suez (Suez / Cairo Road)
- 10 km (Cairo / Ismailia Road)
- 10 km away from 10th of Ramadan City
- 5 km away from Badr City
- Main road network and railway station

The First Phase:
- The first phase includes all the factories located in the area Magra El-Oyoun and the complementary industries when it was moved to the leather city in Robbiki, extending over 160 feddans with 80 warehouses of different areas. The total cost of the first phase is about one billion pounds. The Ministerial Council decided to finalize the first phase of the leather city in July 2016 to be ready to receive all the tanneries that are to be moved from Magra El-Oyoun to Robbiki. All the facilities of the first phase, the work of internal and external infrastructure and electricity and water networks were finalized and ready for receiving 1066 tanneries from Old Cairo to Robbiki.
- The value of the land of Magra El-Oyoun amounts to about LE 2 billion, and the State seeks to make use of it in the development projects.

The Second Phase:
- The second phase is to be conducted on 116 feddans of land. The company to which the work of that phase would be assigned was determined in December, 2016. LE 200 million have been allocated from the Infrastructure Fund and the executive procedures are being undertaken.

The Third Phase:
- The third phase is dedicated to attract foreign investments in the field of feeding and value added industries such as the manufacture of footwear and leather products manufactured for export or domestic use. The value of exports is expected to increase from $170 dollars to nearly $800 million annually. The third phase also allows the establishment of the headquarters of the international companies to increase export opportunities and open external markets for our leather products.

First, The Technical Aspect:

The project aims to:

1. Increase production from half-finished 125 million square feet to full-finished 350 million square feet annually.
2- Increase the added value by finalizing all the stages, especially since 85% of the current exports of leather are not fully finished.
3- Increase the rate of industrial growth in the leather sector to reach 10% per year.
4- Create 25,000 new direct job opportunities by completing the project stages.
5- Increase the industrial investments to LE 5,766 billion (construction - equipment).
6- Double the industrial exports from $ 170 million to $ 800 million annually.
7- Raise the productivity from 60 square feet / worker / day to the world average rate, 250 square feet / worker / day.

Second, The Social Aspect:

The project aims to:

1. Improve working conditions and environment.
2. Raise the wages of the workers.
3. Protect workers in this sector by providing a healthy environment.

Third, The Environmental Aspect:

The project aims to:

- Eliminate pollution resulting from leather tanning operations due to the absence of a treatment plant for industrial wastewater in Magra El-Oyoun.

Fourth, The Touristic, Historical and Archaeological Aspect:

The project aims to:

1 - Preserve the area of Magra El-Oyoun as one of the archaeological areas for it includes Magra El-Oyoun and the complex of religions.
2 – Evacuate tanneries from the area of Misr El-Kadima (Old Egypt), thus allowing the province to develop and make use of them in the fields of tourism and investment by holding many activities.

• Method 1:
- Vegetable tanning is characterized by its durability and high resistance to water since it is saturated with materials such as oils and fats. Vegetable tanned leather tanned is used in manufacturing book covers heavy conveyors for machines.

• Method 2:
- Chrome tanning uses a solution of tanning of chromium sulfate. Chrome tanned leather is more heat and scratch resistant and more flexible that is used in the manufacture of the upper layer of shoes, gloves, wallets, luggage and upholstery.

• Method 3:
- It is based on mixing the two previous methods to produce leather with certain properties such as soft leather garments.

• Method 4:
- This tanning method uses oils and it is used in manufacturing chamois leather made of cattle hides. The skin is cut into multiple layers and the nearest layers to the flesh are used in the manufacture of chamois.
These four ways of leather tanning are used in the workshops in Magra El-Oyoun and each workshop has its distinguished by its way of tanning and its frequent customers.

- The Ministry of Industry approved the transfer of machinery and equipment of the owners of tanneries in Magra El-Oyoun to Robbiki. The machinery and equipment that cannot be replaced, the government will compensate the owners of this equipment for the damage of these machines.
- The lands were allocated to owners of tanneries wanting to move. The city is to operate after the approval of the Ministry of Industry and Trade on operating in the first quarter of 2017 immediately after the transfer and installation of the equipment.
- Licenses were given for operating the factory to their owners. Insurance was applied for large areas of workshops and workers.
- The Government affirms its commitment to facilitate those who want to move their factories to Robbiki by establishing all required concrete bases and floors and providing services to them, while providing easy loans for those wishing to develop factories and purchase new equipment.
- The Ministerial Council approved to allocate 1008 apartments with an area of 95 square meters for workers, only 800 meters away from the work site, to give more stability and resettlement of this region. Cairo Governorate is considering the provision of public transport bus lines to link the industrial city of Badr city with its downtown.
- LE 2310 per meter were paid in compensation for those who want to quit this industry, provided that they will only get it during the demolition and removal of the site for which they were compensated.
- Intensive meetings were held with the owners of tanneries weekly during which their demands and proposals were discussed and met to motivate them to move the tanneries as soon as possible. The owners who are keen on moving the tanneries as fast as possible were given advantages and facilities to help them transfer and install the equipment and machinery.

A cooperation protocol was signed between the Ministry of Industry and Trade through Cairo Investment and Urban and Industrial Development Company and the National Bank of Egypt aiming at providing easy financing packages, providing raw materials for small, medium and micro enterprises in Robbiki and providing financing services to small and medium-sized factories moving to Robbiki and to all investors in various phases of the project on concessional terms and a repayment period of 7 years, including a grace period of two years for small and micro enterprises, while for medium projects the maximum financing period is 10 years including the grace period. In general, the financing is paid in monthly, quarterly or semi-annual installments, in accordance with the cash flows of the project and the duration of this Protocol which is five years from the date of signature and automatically renewed upon the agreement of both parties.

Finally, Robbiki Leather City Project is supported by modern infrastructure that overcomes all the environmental problems in Magra El-Oyoun. Also, new production units, complementary industries and services required for this industry were established in an advanced civilized form designed by the largest specialized Italian companies in this field for these tanneries to be the nuclei for the development of this national industry which would create more competitive export markets globally.