Government sources have confirmed that the committee concerned with
determining the fate of the Iron and Steel Company in Helwan is close
to a decision to sell the company after the reluctance of international
companies to enter into a partnership to develop it and make new
investments to rehabilitate, develop and manage its production lines.
A source said that the announcement will be officially postponed until
the public is prepared for this decision, given the sensitivity of the
company and its historical position
Medhat Nafea, head of the Holding Company for Metal Industries, said,
“The Iron and Steel Company is suffering continuous losses, and its
continuation means continuous bleeding.”
The company’s losses during the last fiscal year increased by about 20
per cent to reach EGP 1.4 billion against EGP 1.2 billion in 2017-2018,
and revenues decreased during the last fiscal year, by 23.2 per cent.
According to the company’s annual report, the equity of shareholders in
the company declined from 90 per cent of the capital.
The company’s equipment and production lines are aging after a long
period of neglect and the failure to make new investments to modernise
production technology and develop its mines.
There are around 7,500 workers, and the number decreases annually as
a result of the suspension of new appointments in the company since
2014.
The Egyptian Iron and Steel Company, which was established in 1954,
as the first steel production company in the Middle East, is one of the
oldest public sector and Egyptian industry companies.
It contributed to the building of the missile wall constructed by the
Egyptian armed forces during the October 1973 war, and had a major
role in building the High Dam.
The liquidation of the ancient company comes within the framework of
the government’s plan with the International Monetary Fund to

restructure the Egyptian economy under which it is selling and
liquidating Egyptian public sector companies making significant losses.