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Egypt Aluminum says final upgrade cost not determined yet

Egypt Aluminum says final upgrade cost not determined yet
The technical and marketing studies will take eight months for completion
Egypt Aluminum
EGAL
2.19% 11.18 0.24

Cairo – Mubasher: Egypt Aluminum said that the cost of the planned upgrade process has not been determined yet, but it is estimated at EGP 13 billion.

The technical and marketing studies, which is being conducted by Bechtel, for the development of the seventh production line are expected to take about eight months for completion, the company said in a bourse disclosure on Tuesday.

In addition, the company said that six consulting companies submitted their technical bids to develop a feasibility study for the implementation of a new car wheel rim production line. The bids are currently under review by the competent committee.

The Egyptian Ministry of Public Business Sector announced on Monday a plan to upgrade Egypt Aluminum at an estimated cost of EGP 13 billion.

The upgrade process includes introducing a new energy-efficient technology, the ministry said, noting that energy costs account for 40% of total production costs.

During the first quarter (Q1) of fiscal year 2020/2021, the company reported net losses of EGP 150.9 million, down from EGP 277.8 million in the prior-year period.