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Sunday, 24 November 2019

Gov’t to decide fate of Egyptian Iron and Steel after talks with stakeholders

Gov’t to decide fate of Egyptian Iron and Steel: The government will soon hold talks with the House of Representatives, company employees, and media professionals about whether to liquidate state-owned Egyptian Iron and Steel, Public Enterprises Minister Hisham Tawfik said on the sidelines of the Investment for Africa Forum. Tawfik provided no further details. The company — one of the largest in its sector and an EGX-listed company — saw its losses rise 44% y-o-y to EGP 1.3 bn in 3Q2019 last fiscal year. Despite this, the company’s general assembly voted against liquidating the company’s assets when it met earlier this month.

Tawfik’s turnaround plan: When he was sworn in as minister last year, Tawfik unveiled a rescue plan for loss-making state firms which at the time had racked up some EGP 7.5 bn in net losses. The plan saw the ministry undertake feasibility studies to determine each company’s financial viability. Companies that were found incapable of turning a profit were to be shut down.

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