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El Sewedy Electrometer is looking to expand in Brazil, spending $3 million in the current year in a bid to grow its business in South America.
El Sewedy Electrometer Egypt provides energy management services such as smart meters and other equipment used in the gas and electricity utilities markets. It also provides equipment used for site surveys, project analysis and feasibility studies.
The company's chairman & CEO Emad Elsewedy, who is also president of the Egyptian side of Brazil-Egypt Business Council, told Zawya in an exclusive interview that "In light of the Mercosur free trade agreement, we are planning to manufacture electricity, gas and water products in our factories here in Egypt, then we will export to Brazil".
He described the Brazilian market as "huge", given the country's 200 million-plus population.
Mercosur is a South American trading bloc which includes Argentina, Brazil, Paraguay and Uruguay as full members, and Chile, Peru and Colombia, among others, as associates. A trade deal between Mercosur and Egypt was originally agreed in 2010, but has only been effective since September 2017.
Elsewedy said that he expects trade between Egypt and Brazil will grow in light of the agreement, which entails the immediate elimination of tariffs on a list of products for both sides, while a gradual reduction of customs duties will be applied to other products over the next decade. After this period, products will enjoy tariff-free movement among Mercosur countries and Egypt.
Elsewedy added that his firm currently exports its products to 46 countries around the world, with 75 percent of products exported to countries across Africa, Europe and the United States.
"Our company has $160 million business value at the current date and (is) targeting (a) 30 percent increase by 2020," he said.
(Reporting by Marwa Abo Al Majd; Editing by Michael Fahy)
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