Egypt Watch

Egypt’s aluminum company losses amount to EGP 800 million

The volume of Egypt Aluminum Company’s losses has increased to EGP 800 million ($51 million), after the complete cessation of export operations as a result of the outbreak of coronavirus, which led to the accumulation of production in warehouses reaching 80,000 tons. The company allocates 80 per cent of its production for export, and only 20 per cent for the local market, which cannot absorb all of the company’s production due to competition from imported aluminum, whose price is EGP 6,000 ($381) per ton less than company price.

A company official said that it had to reduce production, as it stopped 71 cells, out of 526 productive cells, which led to a decrease in workers’ bonuses by an average of EGP 300 ($19). The company had achieved losses of EGP 596 million ($38 million) during the first half of the current fiscal year, in exchange for achieving EGP 758 million ($48 million) profits for the same period of the previous fiscal year, and its revenue decreased to EGP 3.5 billion ($222 million) compared to EGP 7 billion ($444 million). Egypt’s aluminum exports declined, recording $538 million in 2019, compared to $668 million in 2018, a decrease of 19 per cent.