Khaled Al-Feki, a board member of the Holding Company for Metal Industries, announced today that the extraordinary general assembly of Egyptian Iron and Steel Company decided last night to discontinue the company, which means its liquidation.
It is noted that the Holding Company for Metal Industries owns shares in the Egyptian Iron and Steel Company, and the holding company is 83% owned by the Egyptian state. Al-Feki added that the decision was made to separate the quarrying activity of the company and establish a separate joint-stock company for it. At the end of the meeting, the approval to discontinue the Egyptian Iron and Steel Company was made without discussion or any further considerations.
In the first quarter of the 2020-2021 financial year, the Egyptian Iron and Steel Company incurred losses estimated at 274 million Egyptian pounds, after having lost 368 million pounds just a year prior. The Egyptian Ministry of Trade and Industry issued a decision imposing final, graduated safeguard duties on imports of certain steel products for a period of three years, which includes the period of temporary safeguard measures that were imposed, meaning that the decision will expire in April 2022. This decision was made following the confirmation by the Egyptian investigation authority of a significant increase in imports that severely harmed the local industry.
