26/08/2002
Al-Ahram Al-Ektsady Magazine 2002/AUGUST /26
Whilst the demand to conform to the Egyptian standard specifications has become an unnecessary hassle for manufactures the increase in ‘basement plants’ is thus accelerating. Such a matter now threatens the regulated factories, whilst experts call on the government to facilitate the unregulated plants; not to eliminate them. ( Available in Arabic – German in PDF )
The world of automotives, cables, and fire extinguishers is currently under threat by the presence of basement plants. These unregulated plants are rapidly spreading nationwide as the taste for huge profit is desired by the manufactures. However, such a matter threatens the regulated factories, whilst additionally endangering the welfare of the consumer as they neglect to meet the Egyptian standard specifications. Experts discuss the three main types of basement plants; all with differing fraud activity. In line with this, it has been noted that many of these plants use poor raw material in the manufacturing of products, whereby they then print the trademark of international products on their products and then sell them for a cheaper rate; thus becoming a competitive counterpart in the shadows of industry. Experts assert that the government needs to facilitate the unregulated plants in attaining their license, instead of eliminating them completely. In addition, they stress the need to implement harsh penalties for guilty persons found participating in fraud activities, whilst making their name known in the media so as to alert the consumer.