Egyptian private equity firm Citadel Capital has agreed to pay $63 million for a 35 percent stake in Misr Glass Manufacturing to tap regional demand for glass.

Misr Glass Manufacturing, which produces glass containers, will raise its capacity to 224,000 tonnes per year by the end of 2008 from 110,000 per year currently, Citadel said.

"Egypt and the Middle East region have a competitive advantage in glass manufacturing due to the energy intensive and labor-intensive nature of the industry," Hisham el-Khazindar, Citadel managing director, said in a statement.

"Such factors, in addition to growing regional demand and a strategic location for exports, create an exceptionally lucrative opportunity for investing in glass production."

A consortium led by Citadel Capital bought Dina for Agriculture Investments for 480 million Egyptian pounds ($84.81 million) earlier this month.

Citadel, with more than $8 billion under management, agreed to buy Calgary-based Rally Energy for 898 million Canadian dollars ($856 million) last month. - Reuters