Dr Mohieldin Inaugurates Polyester Plant

The Minister of Investment, Dr. Mahmoud Mohieldin, visited some affiliated companies in Alexandria such as the Egyptian Copper Works Co. where he reviewed the company's development plans.

A labor conference was held during the visit, in which the Minister reviewed the development plans of some Ministry of Investment-affiliated businesses in Alexandria such as transportation and engineering companies, Alexandria Container and Cargo Handling Co., Alexandria Pharmaceutical and Chemical Industries Company (AXPH) and Alexandria for Consumer Complexes.

E.G.O.T.H Co.'s hotels development plan was also reviewed. This comes within the framework of following up on the new investment injection plan carried out by the Ministry to develop its affiliated companies.

"As part of the Asset Management Program, huge investments are being injected into affiliated companies across the country," Dr. Mohieldin said.

"A total EGP 777-million investments were injected into public business companies in Alexandria over the past five years alone. Investments worth EGP 188 are expected to be implemented during the coming period," the minister noted.

Dr. Mohieldin reviewed the efforts made to settle the EGP 32-billion debt of public business companies. He said, "Debts will be fully settled by July."

"Those debts would have climbed to EGP 47-EGP 52 billion without the settlements made," he added.

"Fresh investments to the tune of EGP 20 billion were injected into affiliated companies since 2004, including EGP 6 billion during the current fiscal year. It is expected to inject more EGP 6.5 billion during the coming fiscal year."

Regarding the workforce, Dr. Mohieldin said some 72,561 new workers joined affiliated companies since 2005, of whom some 33,723 benefited from the previous decree on converting casual workers into full-time workers after the passage of three years.

"The new decree on appointing workers after the passage of only one year comes in favor of 19,564 workers now and some 13,626 next year," Dr. Mohieldin said.

He said that workers would receive two bonuses; one in July 2010 and the second in Jan. 2011.

"It is important to improve the skills and performance of public business companies' leaders through top-level management programs," Minister Mohieldin said.

Eng. Mohamed Asim, Chairman of the Egyptian Copper Works Co., an affiliate to the Metallurgical Industries Holding Co. (MICOR), reviewed the company's development plan.

EGP 150 million was injected into the company in the first phase and EGP 150 million will be injected in the second phase as of next July, including EGP 70 million-investments in FY 2009/10. Moreover, EGP 228-million debts to banks were settled within the framework of the debt settlement program adopted by the Ministry, Asim said.

Taher Salama, Chairman of Transport and Engineering Co., a MICOR subsidiary, made a presentation on the company's development plan and new investments.

EGP 855-million debt owed to banks was settled improving the company's financial position. The company is expected to make profits exceeding EGP 11 million in FY 2010/11. Furthermore, new investments are being injected into the company and a new factory for tires for private cars and pickups is being established in collaboration with an international company with investments of EGP 1600 million, Salama noted.

Under a plan to develop consumer complexes, Saeed Hassan Ali, Chairman of Alexandria Co. for Consumer Complexes, an affiliate to the Food Industries Holding Co. (FIHC), made a presentation on how to develop consumption outlets in Alexandria. Approximately 51 branches have been established within the framework of a plan to develop 332 complexes as a first phase in all governorates at a total cost of EGP 113 million.

Adel el-Khabiri, Chairman of AXPH affiliated to the Holding Co. for Pharmaceuticals, reviewed the company development over the past years. The company's profits rose from EGP 27 million in 2005 to EGP 49 million in 2009 while exports jumped from EGP 15 million to EGP 27 million during the same period.

About EGP 36-million investments were implemented in AXPH during the last five years. Some EGP 30 million investments, including EGP 10 million in FY 2009/10 are expected to be injected into the company.

Ahmed Mansour, Chairman of Alexandria Container and Cargo Handling Co. affiliated to the Holding Co. for Maritime and Land Transport Co., made a presentation on the company's development and modernization self-funded plan, which started in 2007/08 and will end in 2013/14 at a total cost of about EGP 800 million.

Alexandria container terminal's production capacity increased from 160,000 TEUs, the designed capacity, to 500,000 TEUs, he added.

Nabil Silim, Chairman of E.G.O.T.H affiliated to the Holding Co. for Tourism, Cinema and Hotels (HOTAC), reviewed the development of the company's hotels, including EGP 150 million investments in Palestine, Cecil and Mercure hotels.

The company profits rose from EGP 136 million to EGP 267 million, Silim said.

He also reviewed the company's future plan to develop 950 hotel rooms in the coming years.

Dr. Mohieldin also inaugurated the polyester plant of Misr Synthetic Silk Co. in Kafr el-Dawwar with investments of EGP 221 million, including EGP 91-million from Chinese loans, EGP 70 million from the company's own resources, and EGP 60-million working capital. Such a step is part of a development plan in Kafr el-Dawwar region.