상품DB/이집트 플라스틱 이음새 시장동향(2014.2)/플라스틱의 관ㆍ파이프ㆍ호스와 이들의 연결구류[예: 조인트(joint)ㆍ엘보(elbow)ㆍ플랜지(flange)]

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제목

이집트 플라스틱 이음새 시장동향(2014.2)

게시일

2015-12-30

국가

이집트

작성자

오새봄(카이로무역관)

품목

플라스틱의 관ㆍ파이프ㆍ호스와 이들의 연결구류[예: 조인트(joint)ㆍ엘보(elbow)ㆍ플랜지(flange)]

품목코드

3917

작성일자: 2014.2.5

작성자: 카이로 무역관 Mr. Cho Eunbum (manoa.hawaii@gmail.com), Pakinam Hassan (pakinam.kotra@gmail.com)

1. Demand Trend

 ○ Generally speaking, the Plastic Fittings are essential product in any agricultural, sewage, water treatment or residential project. In Egypt those fields are well established and there are a lot of investments. However, the most known kind of projects in Egypt is the residential compounds, where the plastic fillings can be used inside the building, irrigation networks, watering networks and the sewage networks.

 ○ Currently the housing projects were booming as the upper and middle classes were moving to the new district. Thus there were a lot of investment inflows. By checking the importing values cross different years, we will find that it is increasing between 2010 and 2012 by 22%.

	Country	Value in 2012
1	India	525,026
2	People's Republic of China	401,070
3	United Arab Emirates	30,051
4	Spain	8,514
5	Germany	7,450
6	Taiwan	5,605
7	Italy	4,202
8	Japan	980
9	France	490
10	South Korea	41

	Country	Value in 2010
1	India	257,069
2	Italy	238,690
3	Taiwan	168,279
4	People's republic of china	119,626
5	Germany	18,134
6	United States of America	4,896

 ○ Although, there is an overall increasing in the importing trend, the ranking of the some countries have been changed as China increased from the 4th country to be the 2nd which means that the demand trend has been changed. On the other hand, the Italian products importing percentage has been dramatically decreased by nearly 98%. Such change in the importing preference can explain the demand trend has been changed, where the cheaper products are more desirable in the market. Such change is logic as the Egyptian customers has been facing a lot of political and economical problems in the last 3 years. According to some agents and distributors, they said that contractors needed to cut from their costs, thus they prefer low prices regarding the quality of the products. On the other hand, some Egyptian manufacturers said that well-known contracting and engineering companies which built ‘A’ class residential compounds still prefer quality over prices.  The most common scenario is that the management of the residential compounds depends on a contractor to design and install the whole pipes network as a turnkey project.

 ○ On the governmental demand level, there is an expectation that the demand for sewage, irrigation, water treatment networks will increase within the next 2 years, as the new government will do a lot of infrastructure investment. Generally speaking, the government depends on tenders to get the lowest price contractors with acceptable quality and specifications. In some case, the Egyptian contractor does a joint venture with an international expert to assure good quality and newest technology.

 ○ On another level, the pharmaceutical industry in Egypt is growing sector, as there is a direction for manufacturing medicines in Egypt instead of depending only on importing. Correspondingly, as the factories increase, the requirement for high quality pipes and fittings will increase.

 ○ To sum up, the demand for fittings and pipes is increasing on different segments, such as the real state field, the infra structure done by government and the pharmaceutical field.

2. Competitive Trend

□ As the demand is very high as explained on the pervious section, the competition is very aggressive between different companies. Basically, there are a lot of local manufacturing that produce plastic pipes and fittings made from Poly-pollen and polyethylene. According to the Mrs. Susan the marketing manager for Red Sea Company, she said that the local manufacturers are gaining a noticeable market share in the market and there are a lot of suppliers. However she added that most of the local products have limited sizes which range between 110~114㎜. and most the imported products are the larger ones. Thus, I recommend that A-Sung Clean Flow-Tech will be able to enter the market with the large fitting sizes to be able to compete in a new are that the local manufacturers are not fully covering it.

□ Regarding the prices, it was very hard to define the acceptable price range in the Egyptian market, as there are many factors which determine the price like the type of the fitting, the size and the weight of the part. Generally speaking, the largest local manufacturers are:

 ○ Misr El-Hegaz Group

  - It has a lot of distributors all over the country. This helps them to be used in small personal projects. A side that they enter some tenders with the Egyptian government.  

 ○ Red Sea Pipes

  - It has worked as a supplier for some governmental projects.

 ○ NIESCO for Modern System Water Production

  - It is manufacturing the fitting with small sizes(110~114㎜) and an agent for an Italian company called ‘Comer’ for larger sizes(400㎜). By this, NIESCO is covering different demand areas.

 ○ EEPCO UPVC Pipe Fittings

  - It is specialized in both manufacturing and installing the networks. They have a lot of remarkable sites, which they have installed the network. They have worked on both levels the residential compounds and malls. Moreover, EEPCO is exporting a good percentage from its products t different countries.   

 ○ Roxy For Metal & Plastic Products

  - It is a well established manufacturer with a high capacity.

□ Digging deeper, by searching for distributers, most of the known distributers said that the current supplier are full filling the demand and they don’t have the capacity to import new products. However, some importers like NIESCO said that dealing with Korean company may be a promising chance to expand their market; however, they are still check the contract to check the agreement terms with Comer. Moreover, some companies that are working on the irrigation field like European for Newly Sprinkling Irrigation said that dealing with a new product like the Korean ones can be a good chance for them to increase their market share.

□ To sum up, the competition is very high in the market as there are a lot of local manufacturers and the importing percentage is increasing. For A-Sung to enter the market, they should be able to compete with the Chinese product in terms of prices, this will help A-Sung to export with a reasonable values.