Egypt warming up for Egypt Aluminium Company rehab with EGP 13 bn estimated cost

Egypt warming up for Egypt Aluminium Company rehab with EGP 13 bn estimated cost

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.

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