As an extension of the policies of squandering Egypt’s assets and its main pillars, the extraordinary general assembly of the Iron and Steel Company, a company of the Ministry of Public Enterprise Sector, decided on Tuesday 12 January 2021 to liquidate the giant company after 67 years, as the company was established in 1954. The Association decided to divide the company into Two companies: the iron and steel company that was liquidated, and the company of mines and quarries, and the board of directors justifies this criminal decision on the grounds that the company’s losses are high, and its inability to return to production and work again.
According to what the Egyptian Iron and Steel Company announced, during the last period, that during the period from July 2019 to June 30, 2020, the company achieved losses amounting to 982.8 million pounds, compared to a loss of 1.5 billion pounds for the corresponding period last year, while the total losses amounted to about 9 billion fairy.
Observers said that after about 68 years, from the machine of work and giving and the rotation of machinery and equipment, the coup decided to liquidate the Iron and Steel Company similar to the series of liquidation with “Tiran and Sanafir” and the Nile water and Egyptian gas fields, and today the date was with a giant company and one of the largest iron and steel companies that was founded In the Middle East the middle of the last century.
Observers summoned Dr. Mohamed Morsi’s speech about selling the public sector, and he remembers God Almighty’s saying, “You will remember what I tell you and I delegate my command to God.” In conjunction with that, his most prominent speech on Labor Day from the Iron and Steel Factory in Helwan from among the Egyptian workers.
A shocking decision
And about that, many activists on social media expressed their shock at the decision, which means the inability of the coup to manage the national castle of Egyptian industry in one of the most prominent heavy industries, and surprisingly, the news was denied several previous times on the basis that it is a rumor! However, the Minister of Industry in the government of the coup confirmed the news of the liquidation of the Iron and Steel Company, which was shocking, considering the company a symbol of national ability, and some of them expressed their fear that the Cairo Tower or the High Dam would be sold on the pretext that its operating expenses are higher than revenues. A member of the Human Rights Council, Dr. Osama Rushdie, said: “The liquidation of the iron and steel factory, which was once the pride and pillar of the Egyptian industry, and the martyr President Mohamed Morsi chose it to celebrate Labor Day, and during his reign he produced 3 million tons of steel products .. This is what Sisi does with the industry. And the workers who are displaced by them … condolences to Egypt and shame to the gang that is destroying the country and impoverishing the people. “
Wael Abdel-Hay wrote: “… is the iron and steel company liquidating due to losses? Or is this company the first for the iron industry in Egypt and the region, upon which all industries in Egypt were built over a period of 7 decades?”, Adding: “We hope that this will be to restructure it and push it to an investigation. Profits, and pay a new administration to achieve this, and I do not exaggerate if I say that it is part of the history of Egypt. “
As for the “Hᴀᴢɪᴍ firm” account, he commented: “Believe it or not, today, December 11, 2021 AD, the General Assembly of the” Iron and Steel “company decided to liquidate the company! The iron and steel giant who has been operating for 66 years as the largest and oldest company in the Middle East in its field .. He tells you to lose Hahahahahaha, and he is from when is the military and thief who used to appoint them as managers who could make profits?
Search for the army
And a study published last October, leaked to authorities in the coup authority, revealed the army’s attempts to steal the “iron and steel” company, claiming to save it from drowning and closure! The reliance stated that the company incurred losses amounting to about one billion pounds annually as a result of preventing the supply of coke directly from the coke company except through an intermediary who receives a commission, and the deterioration of the company’s condition and the inflated “non-technical” employment! May God count us and bless the agent, a factory the size of iron and steel, which has special railways that transport iron ore from the mountains in Aswan to the factory in Al-Tebbin directly, and it is attached to a residential city.
The study suggested transferring the company’s subordination to the National Service or the Ministry of Military Production to ensure independence and financial support for the company and not to be subject, even temporarily, to taxes and bureaucratic procedures. The study, which was leaked on October 6, said that the company’s dependency can be transferred to one of these entities, either by acquiring it or by the BOT system until the development project is implemented and re-offered to investors.
The approval of the extraordinary general assembly to start the procedures for separating the mines and quarries activity from the rest of the company’s activities was not new. Rather, it was approved by the company and confirmed by the Minister of Coup Industry Hisham Tawfiq.
Observers pointed out that the study was prepared by the Ukrainian company (Vasmashimbex) on the development of the Iron and Steel Company, which it sent to the Minister of Public Business Sector Hisham Tawfiq on October 6, 2020 AD, and stipulated the presence of the company’s raw materials in order to negotiate with investors to participate in the development process.
A plan was proposed to revive the company and protect it from the fate of closure, through a variety of production that depends on the needs of the market and the rolling mills currently producing iron in Egypt, which includes the possibility of producing 50% and 50% galvanized and colored iron coils that are currently imported, or producing panels and dispensing with Billet production if the market is saturated with rebar as is the current situation.
According to the Board of Directors meeting minutes sent to the Stock Exchange, the company’s losses fell to 982.8 million pounds, compared to losses of 1.5 billion pounds during the previous fiscal year. The amended financial statements of the company showed that the revenues recorded during the fiscal year 2019-2020, about 1.08 billion pounds, compared to 1.24 billion pounds during the previous fiscal year.
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