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The Egyptian Iron and Steel Company’s dormant factories in Helwan could soon spring back into action, with the government studying a plan to restart some units of the complex more than five years after it was placed into liquidation, according to an Industry Ministry statement. No timeline or figures for the potential cost of rehabilitation were provided.
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The partial reopening will focus on producing steel slabs, which will use locally sourced iron ore. The remaining land could be used to establish a textile factory, among other alternatives, the statement suggested.
If you didn’t know, the Egyptian Iron and Steel Company was once a big player on the EGX30, placing it amongst the most liquid and active companies on the exchange. After its founding by the state two years after the 1952 Revolution, the company grew to become an important part of the country’s manufacturing base before outdated technology, rising costs, and competition led to accumulated losses that numerous initiatives to save the company failed to address. The long-struggling public sector giant was taken out of the benchmark index in January 2020 and then completely exited the bourse after the firm was liquidated the following year.
The Industry Ministry is also keen to restart production at other idle factories, including the Delta Fertilizers Company, which has been inoperative for more than five years and is about to undergo the first phase of a EUR 510 mn rehabilitation plan, an official from the Public Enterprises Ministry previously told EnterpriseAM. The statement also mentioned Samnoud Textiles — which had recently seen its workers go on strike over the company’s refusal to pay the government-mandated minimum wage — as part of the plan.
The state’s push to restart production at idle factories has already seen some progress, with state-owned El Nasr Automotive officially restarting operations in November after a 15-year hiatus and delivering its first batch of electric 49-passenger buses in partnership with China’s Yutong to Transport Ministry-affiliated companies. Operations were also restarted at El Nasr Castings late last year after an agreement was inked between the company and the workers’ union to commit the company to fund operations, material inputs, and employee salaries and incentives from the sale of unused assets.
