Nexans has signed a joint venture agreement with two local companies for its project. The French firm estimates that the company will generate $150m in revenue by 2010.
The factory will be located in Mesaieed and will start producing low and medium voltage cables by the end of 2009.
Nexans will own 29 per cent of the joint venture and will operate the company. The remaining shares will be divided between the local Special Projects Company and Al-Neama Industrial Company.
Under the second deal, El-Sewedy will partner with the local Aamal Holding to build a plant with capacity of 30,000 tonnes, most of which will be sold locally. It is due to begin operating in late 2009 or early 2010. El-Sewedy is already building cable factories in Algeria and Saudi Arabia.