Sigmakalon, considered to be the world's fifth largest paints group, has set up a new company to develop its business in Egypt.

Sigma Paints (Egypt) Limited has assumed all responsibilities for the development of Sigma business from June 1, the company said in a statement.

The new firm has already started planning for a factory which will begin production by 2004, it said.

The formation of Sigma Paints (Egypt) follows more than 10 years of operation in the local market specialising in protective and marine coatings with Euroquarzo, a Sigma Coatings licensee.

The company said that until the new factory starts operation, Euroquarzo will continue to produce on its behalf, under a quality control system implemented and managed by Sigma.

This will enable a continuation in the market, providing customers with a continued supply of recognised Sigma products, it said.

Sigma Egypt is headed by general manager Steve Howland who has 18 years of experience throughout the Middle East in the paint business.

The company said Howland is already residing in Cairo and will concentrate on developing and establishing Sigma as a household name in paints.

With a vast selection of decorative products ranging from economical trade emulsions to high quality unique finishes, together with its internationally recognised protective and marine coatings, Sigma Egypt aims to establish itself as one of Egypt's leading suppliers, a status it already has in more than 60 countries worldwide, it said.

Sigmakalon was formed by the merger of Sigma Coatings and Kalon Group following the merger of their respective parent companies, Petrofina and Total.

The Petrofina-Total merger to form TotalFina three years ago and its further transformation shortly after into TotalFinaElf, created one of the world's largest oil companies.