Egypt

In the world of Egyptian industry, perhaps no name is more recognized in heavy industry than that of Ezz Industries. Best known as the progenitors of global steel production, Ezz Industries, led by its charismatic chairman Ahmed Ezz, also manufactures ceramic tiles and is involved in the Gulf of Suez development.

Over the years, Ezz has been one of the few private sector individuals to help strengthen Egypt's position in the Middle East. For his achievements in this regard he has received several important accolades, including the chairmanship of the Gulf of Suez Development Company and the presidency of the Parliamentary Budgeting & Planning Committee as well as the investor association in Sadat City.

Starting work in his family's company at the age of 18, Ezz soon rose through the ranks to juggle a range of crucial responsibilities. Today, he runs a company that produces the most steel in the Arab world, and he often meets with politicians to discuss the government's plans for restructuring the steel industry.
Ezz Industries Chairman Ahmed Ezz

In a recent interview with World Eye Reports, Ezz shared his views on these and other subjects.

WER: What are your hopes and ambitions for the Gulf of Suez Development project?

Ezz: This area is one of the most strategically located development zones in Egypt. I would like people around the world to know that, in partnership with the government, we have built world-class infrastructure. The port has already been completed, and some industries have started operations. We believe the area is particularly attractive for LNG (liquefied natural gas) plants and petrochemical companies. There are good tax incentives, and the labor force is multi-disciplinary. My message, especially to the Japanese, would be: "Put Egypt on your radar screen." As one of the countries with a high growth potential, we are the ideal country to invest in.

WER: Ezz Industries has a strategic alliance with ANSDK, three of whose shareholders are Japanese. What have you learned from one another?

Ezz: Our connection to Japan started in 1984 when ANSDK was established. For us, the Japanese have passed on a lot of technological knowhow and training systems. This has made us more efficient. As with all alliances, there was a period of transition, when we had to identify a place where we had common ground. Once this was established, it became evident that we will continue cooperation with our Japanese partners for a long time.

Another project of cooperation between us and the Japanese took place in 1999 when EZDK, our steel manufacturing operation, was selected to become the exclusive supplier of steel used in the construction of the Suez Canal Hanging Bridge that was built and financed in cooperation with the Japanese government.

WER: In a world where size seems to be everything, is consolidation in the industry the only way forward?

Ezz: Yes. Competition is global and by becoming a large player, you have more power. We believe that by creating a challenging environment with a lean private sector mentality, we can take on our competitors. In other words, rather than just being a local player, we want to focus on exports and bring in a new generation of leaders to take us to the next level. By aligning ourselves with the Japanese, we can exchange knowledge. In this global world, all companies need to be active.

WER: You are often quoted as saying, "People are the secret of success." How does Ezz Industries develop its workforce?

Ezz: As we are a global company, so our staff have to be as good as the people in the best companies around the world. When customers look at a product, they see it in its finished element. But that product is a culmination of many things - price, efficiency, logistics, and on-time delivery. And this all comes back to our workforce.

By investing in people, we bring them up to world-class standards. I think it is less of a challenge in Egypt because the people in general are wonderful. One of the things that we do for our middle management is send them on a two-year sabbatical to get their master's degree in business. Out of the 5,000 people who work for our company, we would like to have 100 people go through that program in the next five years.

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