Hisham Tawfiq, Minister of Public Enterprise, said that there is no relationship between the liquidation of companies in the losing government and the need for a “community dialogue,” as we are not talking about building a road or a zoo, for example.
Tawfiq added, “The Minister of Information hosted me in March 2020, in the presence of newspaper editors, in preparation for the liquidation decision, considering that it would not exceed June or July of the same year, but we did not have the right to speak publicly because of the listing on the stock exchange.”
He explained during the symposium organized by the “Egyptian Center for Economic Studies” today, entitled: “The Iron and Steel Dilemma .. An Objective Scientific Dialogue on the Problem”, that the iron industry is based on 3 main axes, the first is the presence of locally available sources of raw materials with good concentration, and the second is cheap energy. And the third is the market, and when we found the technology in the company to be obsolete in a way that eats up energy, the loss was at the actual production, and we made sure that increasing energy and injecting new investments will not improve the situation.
Hisham al-Harouni, the former head of the Industrial Development Authority, said that steel manufacturing is not reinforcing iron, as reinforcement is the least added value in the entire sector, as flat sectors are much more important.
He explained that the integrated factories all depend on importing raw materials, such as “DRI” and “scrap”, which threatens the iron strategy in Egypt, and if the import is stopped, the industry will lose about 6 million tons annually.
The General Assembly of the Iron and Steel Company decided to liquidate the company and separate the mining and quarrying activities in a separate company, after the aggravation of its losses.
The Ministry of Public Enterprise said that the iron and steel company’s market share in the Egyptian market is less than 1% as it produces about 112,000 tons annually.
The Ministry announced that the compensation of the employees of the company after its liquidation will be rewarding, and will not be less than 225 thousand pounds for each worker, in addition to that the companies affiliated with the Metal Holding Company are in urgent need of some experience to meet their needs, and that the first priority is to seek the technical and marketing expertise that exists among the employees In the Egyptian Iron and Steel Company, and that the files of those experiences and their names are available to the Holding Company for assistance in its subsidiary companies.
The article: Minister of Business Sector: The liquidation of the losing government companies does not require a societal dialogue that was written in the Al-Borsa newspaper.