General Assembly of the Holding Company for Chemical Industries

The annual general assembly of the Holding Company for Chemical Industries was chaired by the Minister of Investment, Mr. Ashraf Salman.

The meeting was attended by representatives of the Central Auditing Organization, board members of the Holding Company and representatives of the Ministry of Investment in order to discuss the company’s indicative budget for the fiscal year 2014/15.

The board’s report on the company’s indicative budget was presented by Eng. Yehia Mashali, chairman of the company. He noted that the Holding Company targets to achieve a surplus of EGP 615 million from the portfolio management compared to an actual amount of EGP 579 million in FY 2012/13, recording an increase of EGP 36 million or 6 percent.

He explained that the Holding Company and its affiliates target to inject investments of EGP 5.1 billion during FY 2014/15 in the form of new projects, replacements, renewals or technical restructuring. The value of implemented investments amounted to EGP 1 billion during the period from July 1, 2013 until May 31, 2014. The Holding Company seeks to realize EGP 23 million in revenues for the state’s public treasury during FY 2014/15 through the payment of taxes, customs, medical insurance..etc.

The financial indicators of the Holding Company’s affiliates during the budget year were as follows: - Targeted revenues from current activity of affiliates amounted to EGP 12 billion for 18 companies for FY 2014/15 compared to an actual amount of EGP 9.5 billion during FY 2012/13 and EGP 8.4 billion during FY 2011/12, recording an increase of EGP 2.5 billion and EGP 3.7 billion or 27 percent and 44 percent respectively.
- Targeted dividends of affiliates amounted to EGP 1.45 billion for FY 2014/15 compared to an actual amount of EGP 1.3 billion in FY 2012/13, recording an increase of 13 percent.
- The Holding Company targets EGP 711.5 million in exports during FY 2014/15 compared to EGP 635.2 million during FY 2012/13 and EGP 430.1 million in FY 2011/12, recording an increase of 12 percent and 65 percent respectively.
Then the meeting heard the CAO’s report and comments of the general assembly members on the indicative budget. The company’s management presented its feedback on those comments.
The Minister of Investment highlighted the importance of having specific criteria for the assessment of the performance of public business companies given the real value of their managed assets. He urged companies to make use of untapped assets within the restructuring plan of companies. The Minister said it was essential to enhance the role of the Leadership and Management Development Center to undertake its part in the development of human resources of public sector companies as well as the role of the Public Sector Information Center in providing information services to holding companies and their affiliates.

The general assembly members highlighted the importance of developing clear and scheduled plans to implement the holding company’s projects and developing proposals to develop the industry and depend on local sources in providing the production inputs.

The general assembly of the Holding Company for Chemical Industries approved the company’s indicative budget for the fiscal year 2014/15. The Holding Company will amend the budget given the comments made by the CAO and the general assembly members. The updated budget will be presented in the next meeting of the general assembly within six weeks.