Islam Salem _ Engineer Abdel Qader Moussa, general manager of board affairs and managing director of Misr Aluminum Company, said the company is expanding aluminum production through the establishment of the Seventh Line project, explaining that the cost of rehabilitating the company calculated in collaboration with the American company Bechtel, to maintain production capacity.The current amount of 320 000 tons per year, and prolongs the life of the plant for many years to come, especially since the plant has been established since the seventies of the last century is.
The presentation of a percentage of the stock target .. The final cost is estimated in collaboration with the American Bechtel.
Moussa added, in exclusive statements to Habi newspaper, that the company intends to increase production during the coming period, especially with the increase in the prices of aluminum products worldwide, as it has reached during the last period to 3 thousand dollars per ton, to drop recently to $ 2,700, after the average price per tonne over the years was only $ 1,800 last year.
The managing director of Misr Aluminum has confirmed that there is a huge global demand for aluminum, and in Egypt the air networks are being replaced by ground cable networks with a decent life project, which also increases Egypt’s need for aluminum, and therefore the company is looking to step up. keep up with demand rates by increasing the production of the aluminum factory.
He pointed out that Misr Aluminum Company has benefited from the price increase and achieved positive and promising financial results, and this will help attract more investment to the company during the coming period, especially with the expected increase in production rates, as preliminary studies indicate an increase. in production rates up to 570 000 tons annually.
He noted that the company is offering a percentage of its shares to investors with the aim of developing and rehabilitating the factory, and after the results of the restructuring that Bechtel will issue, the initial economic results for the development of the company and the factory indicate the need for more than $ 2.5 billion to implement the development operations, expect the completion of the study process And calculate the final cost within two or three months.
Preliminary studies indicate an increase in production to 570 000 tons per year after development
The managing director of Misr Aluminum explained that the company has promising opportunities to increase productivity and development, noting that there is a preliminary approval to establish a solar power plant to produce about 1 gigawatt, which is about 20% of energy consumption will provide, which will help the company to work with clean energy or green energy.
He pointed out that the company’s exports represent 60% of the volume of the factory’s production exported abroad, so that foreign currency is used to purchase raw materials from abroad, especially since 90% of the raw materials required is imported for aluminum production from abroad. , and therefore the exports implemented by the company and the factory cover the currency needs to purchase raw materials. .
He stressed that the local market requires more than 40% of the factory’s production capacity, as Egypt consumes between 400,000 and 500,000 tons of aluminum, and stressed that any increase in the factory’s production capacity will be directed directly to the local market, to all of Egypt’s aluminum needs and supplies The country’s foreign exchange.
Regarding the most prominent countries to which the factory’s products are exported, he revealed that most of the exports go to the European mainland, and part of it to the United States and some Arab and African countries, while Italy the make up the bulk. of the factory’s exports.
Imports 60% of production, and Italy is responsible for the largest share
He added that the most prominent goal during the current period is to cover the needs of the local market and achieve self-sufficiency, while maintaining the factory’s exports to provide the currency needed to supply the raw materials needed for production. to buy.
The Minister of Public Business, Hisham Tawfiq, revealed in exclusive statements to the Hapy newspaper at the end of last May that the financing of the rehabilitation and development of the Misr Aluminum Company will be done by increasing the company’s capital after the size of the cost required for development, in addition to part in the form of loans.
Tawfiq added that the capital increase will be part by attracting an investor to the company, explaining that the necessary investment costs are currently being studied, and accordingly its distribution between capital increase and loans will be determined, emphasizing that there is no predetermined ceiling not. for the share that the investor will acquire.
Last February, Misr Aluminum Company issued a statement stating that it had contracted with the American international company Bechtel to provide a feasibility study, capital cost estimate and economic analysis for Misr Aluminum regarding the establishment of a seventh production line with a capacity of 250 thousand tons of aluminum metal annually.
She explained that the economic study of the seventh-line project showed negative results due to the price of electricity in addition to the size of the project’s economies (short production line – 208 cells).
According to the statement, Bechtel has developed an additional scenario that was not included in the scope of the feasibility study and an approximate non-bank cost to build a longer production line with 436 cells with a production capacity of 570 000 tons of aluminum annually .Bechtel has a preliminary economic analysis for this approximate scenario.
And it announced that a study had been done to reach the break-even point, which showed that the price of energy is 70 piasters per kilowatt-hour, with the price of the base metal changing according to the variables of the International Metal Exchange in London.
The Minister of Public Business Sector revealed that he met two weeks ago during the meeting with Prime Minister Dr. Mostafa Madbouly and Dr. Mohamed Shaker, Minister of Electricity and New and Renewable Energy, has presented the construction of a solar power plant around the aluminum complex, and it is expected that the construction of the plant will be submitted to investors using the IPP system.
IPP (independent power producer) refers to an independent power producer that sells it at a fixed rate to utilities and consumers, and is a common model in new and renewable energy, especially in countries where energy prices are not subsidized.
In the statement issued after the meeting, Hisham Tawfiq, Minister of Public Affairs, said the project, the details of which are being studied with the world consultant (Bechtel), is the rehabilitation of the aluminum factory complex in Nagaa Hammadi, with a production capacity of 320,000 tons / year, note that more than half of the production Misr Aluminum Company is exported abroad, due to the demand for the company’s products.
The Misr Aluminum Company made a net profit of £ 1.688 billion during the nine months ending last March, and according to the income statement sent to the Egyptian Stock Exchange, revenue soared to £ 10.760 billion during the period from July 2021 to the end of last year. March.