Startup Lagos

10-Feb-2025

Acquisition

Egyptian Startup Simplex Closes $13M to Establish CNC Factory in the Middle East 4 months ago

Simplex, an innovative industrial solutions company specializing in the manufacturing of CNC (Computer Numerical Control) machines, has secured a $13 million investment aimed at bolstering Saudi Arabia's efforts to strengthen and localize advanced industries. This funding will facilitate the establishment of a large-scale CNC factory in Riyadh, marking a significant milestone for both Simplex and the region's industrial landscape.

Founded in 2013, Simplex has emerged as a prominent player in the manufacturing sector, catering to a diverse range of clients across Egypt and the broader Middle East. The company's commitment to delivering cutting-edge technological solutions has positioned it well to meet the varying industrial needs of regional and global markets.

In conjunction with securing financing, Simplex has signed a Memorandum of Understanding (MoU) with Saudi Arabia's National Industrial Development Center. This partnership will solidify the establishment of the company's first factory in the Kingdom, underscoring Simplex's intent to integrate into Saudi Arabia's burgeoning industrial ecosystem.

The new facility will occupy a 20,000-square-meter site in Riyadh, aimed at enhancing the company's market presence and expanding its manufacturing capacity. According to Mohamed Mansour, Co-Founder and Chief Commercial Officer at Simplex, this expansion is a strategic initiative designed to increase the company's global market share. "We are committed to developing advanced products that meet the demands of multiple industries, thereby reinforcing Saudi Arabia's status as a hub for industrial production and exports," Mansour stated.

This initiative aligns seamlessly with Saudi Arabia's Vision 2030, which seeks to diversify the nation's economy and foster the development of high-tech industries. In addition to manufacturing advanced CNC machines, Simplex aims to contribute to the industrial sector's growth by creating job opportunities and enhancing the Kingdom's non-oil export capabilities.

Chairman Eng. Ahmed Shaaban emphasized the significance of this investment, noting that while the final production capacity of the new facility has yet to be determined, operations are expected to commence in the first quarter of 2026. He reiterated Simplex's dedication to enhancing Saudi Arabia's industrial sector and contributing to the nation's broader economic objectives.

By establishing a manufacturing presence in Saudi Arabia, Simplex is poised to strengthen its operational capabilities, support the local industry, and extend its reach within the international market. This project not only reflects the company's ambitious growth plans but also supports Saudi Arabia's vision for a robust and diversified industrial economy.

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