Metallurgical Industries Holding Reassesses Development Cost for Egyptalum Factory
The Metallurgical Industries Holding Company is taking a strategic step to recalibrate the investment required for the modernization of the Egyptalum Factory Complex. Amid economic fluctuations, the initial estimate of $315 million is under revision, with projections now ranging between $400 and $450 million. This revision will be finalized upon the completion of the assessment by a newly formed technical committee.
This reassessment comes as part of the company's redevelopment tender process, aiming to enhance the operational capacity and technological capabilities of the Egyptalum Factory. The winning bidder of the tender will contribute the recalculated investment towards the capital augmentation of Egyptalum, following a fair value assessment.
Despite the anticipated capital injection from a strategic partner, the Metallurgical Industries Holding Company is determined to retain its controlling stake, ensuring the partner holds less than 50% ownership.The tender process has attracted attention from international bidders, with proposals received from a Chinese firm and an Emirati entity. These bidders are set to submit their financial offers after a thorough evaluation of the technical requirements needed for the comprehensive upgrade of the factory complex, which sprawls over 5,000 feddans.
The scope of redevelopment encompasses a wide range of sectors within the factory, including aluminium production lines, electrical networks, and several other critical components that ensure the factory's efficient operation.
Egyptalum, with its current capacity of producing approximately 320,000 tonnes of aluminium annually, including various products such as cylinders, wire, and foundry molds, is eyeing an ambitious expansion. The redevelopment aims not only to modernize existing facilities but also to significantly increase production capacity to 570,000 tonnes annually. This includes potential enhancements with the assistance of Bechtel and the construction of a new factory designed to produce an additional 250,000 tonnes per year.
