Egypt’s iconic Iron and Steel Company liquidated due to losses

SourceAhram
SectorEconomy
CountryEgypt

The board of directors of  the Egyptian Iron and Steel Company (EISC) passed on Tuesday a resolution liquidating the company and dividing it into two new entities. The EISC has been one of the country's industrial icons since its establishment in 1954 and start of operations in the early 1960s. The resolution stipulated the EISC will be divided into a company for iron and steel and another for mines and quarries. The move lays the groundwork for private sector investments to play a role in the two companies in the future, in light of the state’s plan to make use of its loss-making assets and untapped opportunities. The EISC board said the decision was made as a result of the heavy losses that have been accumulating over the years, which hit EGP 9 billion, EGP 982.8 million of which was lost between July 2019 and June 2020. According to the balance sheet of the EISC, which is listed in the Egyptian Exchange (EGX), the company’s total value of assets witnessed a modest increase from 2017 through 2021. The value of assets slightly rose to around EGP 3 million in 2021, up from EGP 2.9 million in 2017, incurring ...read more...