(MENAFN- Daily News Egypt) Egypt's Prime Minister Mostafa Madbouly met with Minister of Public Enterprise Sector Mohamed Shimi to discuss ongoing industrial projects in the textile, aluminium, and automotive sectors.
During the meeting, Shimi provided a comprehensive update on the development of projects under the Holding Company for Spinning, Weaving, and Ready-Made Garments.
He reported that the company has consolidated its subsidiaries from 31 to 9 and established a specialised sales and marketing subsidiary.
This reorganisation aims to enhance the efficiency of the spinning and weaving industry. The development includes short-staple cotton cultivation trials, which are intended to reduce foreign currency demand, improve cotton fibre quality, and increase yield per feddan.
Shimi also highlighted that the government has set guaranteed prices for Egyptian cotton at EGP 10,000 per quintal in Upper Egypt and EGP 12,000 per quintal in Lower Egypt. The cultivated area has increased to 311,000 feddans this year, up from 250,000 feddans last year, with an expected harvest of about 1.9 million quintals of cotton.
The plan to expand short-staple cotton cultivation involves increasing the cultivated area to 2,250 feddans this season, up from 250 feddans in the 2020/21 season, with a goal to reach 150,000 feddans over three years. Additionally, the development of long-staple cotton seeds in coordination with the Ministry of Agriculture is underway.
Shimi discussed the reactivation of the MISR for Artificial Silk and Polyester Fibres Company after a 12-year hiatus. The company, operating on a 144,000-square-metre site in Kafr El-Dawar, Beheira Governorate, has a production capacity of 90 tonnes per day.
This development aims to provide local raw materials and reduce the state's import bill. The project for textile and ready-made garment factories includes an investment of approximately €1.1bn, covering machinery, equipment, construction, and infrastructure upgrades.
Madbouly emphasised the importance of focusing on polyester production and expressed readiness to support any expansions or new projects in partnership with the private sector.
Shimi provided an overview of the modernisation of ginning facilities under Misr Cotton Trading and Ginning Company, which includes 25 ginning factories across the country. He also discussed strategies for increasing local sales and exports.
Regarding aluminium projects, Shimi noted the global interest in aluminium, citing that the trading value of aluminium products reached $230bn in 2023 and is expected to grow annually by 6.2%, potentially reaching $394bn by 2032. Egypt Aluminum (EGAL), the country's sole producer of aluminium products, has an annual production capacity of 310,000 tonnes.
The company aims to export 60% of its production and sell the rest locally. Key export destinations include Italy, Germany, Greece, and Poland, which together accounted for 96% of Egypt's aluminium exports, totalling 174,000 tonnes worth $452m in 2023/2024.
Shimi discussed ongoing projects at EGAL, such as the construction of a 50,000-tonne alumina silo and a comprehensive overhaul of the current production line to maintain a capacity of 310,000 tonnes for 20 years.
Future projects include establishing a 2-million-tonne-per-year alumina refinery to meet the company's annual needs and export the surplus. Another project involves setting up an additional production line with a capacity of 200,000 tonnes, aimed at replacing 60% of current imports and increasing EGAL's production capacity to 510,000 tonnes per year.
Plans also include building a new aluminium plant with a capacity of 600,000 tonnes to fully replace imports and meet local market demand, potentially making Egypt a leading aluminium producer with a total capacity of 1.1 million tonnes annually.
Prime Minister Madbouly stressed the importance of on-ground follow-up to ensure the timely completion of development projects in various factories.
Shimi also provided an update on the automotive industry, particularly El Nasr Automotive Manufacturing Company.
He discussed the infrastructure development project for the company's factories, which includes developing the passenger car factory and upgrading assembly lines and testing facilities.
He mentioned several agreements for local manufacturing and the supply of buses, light commercial vehicles, and electric cars with Chinese companies, covering components, guarantees, and after-sales services.
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