Egypt’s government is warming up to implement the modernisation project of Egyptalum, a national company for aluminium industries listed in EGX as Egypt Aluminium (EGAL), with an estimated cost of EGP 13 billion, Minister of Public Business Sector Hisham Tawfik announced on Monday.
Tawfik said in a statement that the US-based Bechtel, the project consultant, is expected to finalise the project’s feasibility study by mid 2021.
The project includes the replacement of old parts over two phases and adopting new technology that uses less electricity with the aim to increase the company’s production capacity to reach 250,000 tones annually, according to the minister.
He added that six international companies participated in the public tender the ministry conducted to provide consulting services and prepare feasibility studies for establishing a new production line that focuses on producing auto tires.
This comes amid the crisis of the liquidation of Egypt’s giant Iron and Steel Company that occurred on 12 January according to a resolution passed by the company’s board of directors driven by its significant losses over the years.
Egyptalum is a subsidiary of the Metallurgical Industries Holding Company. The two companies are working under the Ministry of Public Business Sector.
The company’s total losses in FY2019/2020 recorded EGP 994 million, compared to FY2018/2019’s EGP 571 million in profits, according to the company’s financial statements released in December.
The company attributed the losses to the COVID-19 pandemic and the weak return on investments, which all affected the company’s exports severely.
Egyptalum’s total assets are worth EGP 11.6 million in 2021, with a total liability amount of EGP 6.5 million in the same year, according to the Egyptian Bourse data.
Egyptalum began construction in 1969 as one of the most important giant national projects in Nag' a Hammady located in Upper Egypt.
In 1975, the company initiated its first spark, announcing the start of production.
In April 2010, all production lines of the company were rehabilitated and upgraded to pre-baked cells to reach 320,000 tons annually.
48 companies out of 120 affiliated to Egypt's public business sector have made a total of EGP 44 billion over the previous decades, according to Tawfik in comments he made during a discusion panel held on Sunday.