Every now and then Krah Group employees visit different Krah Pipes production plants. In April 2018 Alexander Krah went to visit the factory Krah Misr in Egypt.
Having arrived in Cairo he is warmly welcomed by the owners at the airport. The owners and managing directors are the two brothers Peter and George Yussuf Sadek.
The two brothers have been producing Krah Pipes for almost 10 years. Since the political changes in Egypt during these years, the factory was able to produce and sell large pipe systems successfully.
From the airport the group went straight to the production plant, where in a very modern and big office the two brothers held a company presentation. They showed how the company has been growing since 1975 – it was very impressive and inspirational to see how proud the two brothers were of what they had achieved. The whole production plant is in a very neat and maintained condition and the products (pipes, manholes, fittings and tanks) correspond to the international quality standards. Later this afternoon Alexander had the possibility to talk to Peter privately regarding several topics in a nice club-house.
1) According to international press we constantly hear that Egypt is booming – especially in the sector of infrastructure. Is that true and what is your main market segment for your products?
Yes, actually it is true – the Egyptian government decided to invest in infrastructure – aiming to provide enough homes for every citizen including the needed infrastructure to increase the life quality of the Egyptians. Today Krah Misr is mainly working on domestic sewage networks. We supply the complete system (pipe, manhole,fittings..) and install it. The market is moving into a positive direction, especially after the economic corrections the government has done in the past.
2) Which difficulties do you have in marketing your products?
The main problem is to change the market mind-set for big pipes. Egypt is more convinced of heavy and rigid pipes and we faced a lot of resistance implementing pipes like DN/ID 2500 mm made out of Polyethylene – although these kinds of pipes have been used already with big global success.
3) What do you do to change these stubborn mind-sets?
We are constantly working on arranging meetings and seminars for clients, consultants and contractors to present the advantages of the Krah Pipes solutions – including manholes and fittings. And we try to present our success of the latest seven years of carrying out several projects in Egypt.
4) What are your strengths?
We produce and deliver smart solutions that weren’t present on the Egyptian market before and we offer a very economic and quick project realization time. In Egypt we have many areas of loose soil, where no other pipe system can solve the problem as good as Krah Pipes. We are very focused on working on extensive engineering before – in the “under design” phase and also in the “under construction” phase.
5) Where do you see successful Egyptian markets in the future?
The trend is going into three major applications: a) large diameter pipelines to serve the new cities, b) desaltination plants, due to critical situations with the Ethiopian damm we have to increase our own resources for drinking water other than our famous river NIL. So there is a plan for a large number of desaltination plants to convert sea water into drinking water. The third application are sewage treatment plants so the country can use the treated water (sewage) for agricultural purposes.
6) How active are international competitors?
They are trying to get into the Egyptian market but due to support of the government for local producers we can be a successful plant. Especially since we are working with the latest production technology with international know-how in several fields. Our products are minimum the same quality than foreign products at lower prices and the requested quick availability of the products on the market. Furthermore we don’t need to face the “still” complicated import procedure and we do all our invoices in Egyptian pounds – which is a big additional advantage.
7) What was your latest great project in Egypt?
Currently we have two big projects running, one of them is situated in the heart of Giza where we installed 10 km of DN/ID 1200 mm and DN/ID 1500 mm pipelines of Krah pipes with many manholes, which decrease the project costs significantly and increase the speed of the project progress due to the quick installment. The second project is in Dumietta, the “furniture city” (a new industrial area for the furniture industry). The difficulty here is a very high ground water table and very loose soil, we are awarded from the Military to realize the complete sewage and storm water system for the complete area – in a very, very tight time schedule: 8 km of pipes (>600 mm) and DN/ID 600 mm manholes within 3 months – all jointed by electrofusion.
8) Last question – just to be curious: Are there any more investments planned?
Yes, for sure! The Egyptian economy is very promising for the next years and we think about investing in Egypt in production equipment and new solutions, to keep our market leading position.
Thank you for the great days and I hope to be seeing you in May at the IFAT 2018 in Munich. Thank you very much for the time spent here and your interest in the Egyptian market, Alexander. I am sure I will see you soon here in Cairo again.
Peter Youssef Sadek, Krah Misr
Alexander Krah, Krah Pipes GmbH & Co. KG