Metallurgical Industries Holding Recalculates Investment For Egyptalum Factory Development


(MENAFN- Daily News Egypt) The Metallurgical Industries Holding Company has established a technical committee to reassess the investment required for the modernization of the Egyptalum Factory Complex. This reassessment aligns with the company's redevelopment tender.

Economic fluctuations have necessitated a re-evaluation of the investment cost, previously estimated at $315m. Sources now anticipate a potential increase to $400-450m, with a definitive figure expected upon the committee's conclusion.

The victor of the development tender will contribute the investment towards Egyptalum's capital augmentation, post fair value assessment.

The company intends to maintain its controlling interest, ensuring any strategic partner holds less than a 50% stake.

Today's announcement revealed two bids for the redevelopment: one from a Chinese firm and another from an Emirati entity, both presenting technical proposals.

These contenders will forward their financial bids after reviewing the technical requirements for enhancing the factory complex, spanning over 5,000 feddans.

As previously disclosed, the refurbishment encompasses multiple sectors: aluminium production lines, electrical networks, anodic conductor bar manufacturing, carbon processing, water systems, air compressors, industrial gas stations, and foundry operations.

EgyptAlum's current output is approximately 320,000 tonnes of aluminium annually, including diverse castings like cylinders, 9.5 mm wire, and foundry moulds with 77.7/99.8% purity. The tender also covers upgrades to the rolling mill, workshops, extrusion plant, labs, transport, and port unloading and shipping facilities at Safaga.

Aiming to boost its annual production to 570,000 tonnes from the existing 320,000, the company is exploring enhancements to its current plant with Bechtel and plans for a new factory capable of producing 250,000 tonnes per year.

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