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Dubai Group buys 49 per cent stake in Sphinx Glass factory

DUBAI — Dubai Group, the leading diversified financial services company of Dubai Holding, yesterday announced it has acquired a 49 per cent stake in Egypt’s Sphinx Glass Company in partnership with Cairo-based private equity firm Citadel Capital.

Dubai Group invested Dh730 million in the project through its subsidiary Dubai Capital Group to become the second largest shareholder in the greenfield project located 70 kilometers north of Cairo.

Sphinx Glass’ float glass manufacturing facility will employ cutting-edge technology licensed from PPG Industries, a global market leader in high-quality float glass, and will produce 220,000 tons of float glass annually targeting both the domestic and export markets. Sphinx Glass is a wholly owned subsidiary of GlassWorks, a company established by Citadel Capital and a group of leading regional investors to pursue investments in the promising MENA glass industry.

Mustafa Farid Geninah, CEO of Dubai Capital Group, said: “Dubai Capital Group aims to own and build strong portfolio companies by concentrating on private equity, growth capital, ‘greenfield’ investments and long-term public equity holdings. Our investment in the Sphinx Glass plant reflects our strong belief in Egypt’s competitive advantage in the glass industry, not just within the region but also globally.

Mustafa Farid Geninah added: “Glassmaking in Egypt is a centuries-old industry, which is currently growing at a rapid pace. Investing with Citadel Capital in Sphinx Glass puts us in an ideal position to capitalise on this growth and will provide sustainable returns for our shareholders as part of our diversified investment strategy.”

Float glass refers to glass produced in flat sheets using a technique that involves pouring molten glass on a bath of liquid tin, where a sheet of glass is formed by floatation. Sphinx Glass will produce glass with thickness ranging from 2mm to 19mm primarily for use in the construction and automotive industries.

Hisham El-Khazindar, Sphinx Co-Founder and Managing Director of Citadel Capital said: “The Middle East and North Africa’s abundant access to fuel resources and sand, the primary raw materials for glassmaking, is allowing the region to become a strong global glass producer.

“The construction of Sphinx Glass’ 220,000 square-meter state-of-the-art plant reflects our strong belief in Egypt’s competitive advantage in the glass industry, and collaboration with global leaders such as Dubai Capital Group and PPG Industries is an exciting step toward fulfilling this strategy.”

By focusing on strategic investments in public equity, greenfields, growth capital and leveraged buy-outs, Dubai Capital Group has become a leading private equity investor in Mena region with one of the highest track records in the region.

Dubai Group is the leading diversified financial services company of Dubai Holding. Focused on banking, investments and insurance regionally and glob ally, Dubai Group has offices in Dubai, London, New York, Pittsburgh, Kuala Lumpur and Hong Kong. Through its subsidiaries and affiliates, Dubai Group has business interests in 26 countries that employ 16,000 individuals.