Egypt’s president rejected the Clal concern’s proposal for a three-way partnership in the plant.
Egyptian President Hosni Mubarak yesterday rejected a plan formulated by the Clal concern to construct a joint Israeli-Egyptian-Palestinian cement factory. However, according to Clal general manager Yossi Rosen, Mubarak recommended the construction of a joint Egyptian-Israeli plant in southern Egypt. Rosen stated Mubarak offered the land for free for 50 years to the plant’s founders.
In a joint meting with Prime Minister Benjamin Netanyahu, the government entourage and about 40 Israeli and Egyptian businesspeople, Mubarak noted that Egypt plans to develop the Western desert and intends to construct four cement factories for this purpose in Upper Egypt. "An Israeli-Egyptian factory could be one of these," he noted.
Israeli businesspeople were divided in their interpretation of Mubarak’s response. Izzy Tapuchi, general manager of Pioneer Israel and a close associate of the prime minister, saw this as a signal of Egyptian willingness for closer ties with Israel. Tapuchi even stated that he would try to interest the international Pioneer company in entering an Israeli-Egyptian joint venture as an investor.
Another businessman, operating secretly in Egypt in recent years, considers the Egyptian suggestion impractical. "The Western desert is a vast expanse of dunes and Egypt wants to construct new cities there. If that isn’t enough, Upper Egypt is the stronghold of Egypt’s Muslim extremists."