The Holding Company for Spinning and Weaving recorded losses at EGP 2.1bn for the current financial year, according to company chairman Ahmed Mustafa. This reflects a rise from EGP 1.8bn compared to the 2012-2013 fiscal year. Total wages for the current fiscal year were EGP 2.3bn, up from EGP 1.9bn last year, Mustafa said at a press conference held yesterday. Holding Company for Spinning and Weaving is comprised of 32 subsidiary companies, including 9 cotton companies and 22 spinning and weaving companies. The wage increase amount to 135% of wave revenues, regarding which Mustafa said: "Shutting down these companies is best from a financial perspective." He added that it is cotton companies that are solely profit, although the profits were not generated by activity. According to Mustafa , "the coming months will be intense as we must reduce the losses in order to make a profit". He expected losses to be reduced during the 2014/2015 fiscal year to EGP 1.4 bn. Energy exploited by Holding Company for Spinning and Weaving currently ranges between 30-35%, which the Chairman called "unreasonable". He added: "We have to raise this to 70% during the first quarter of the coming fiscal year." Mustafa asked board members to open their door to labour leaders to solve issues and eliminate factional demands, so that production capacities are not slowed. Regarding cloth, yarn, and cotton companies' idle stock, Mustafa said that "companies must get rid of this stock." Former Prime Minister Dr. Hazem Beblawy approved the sale of ideal stock for companies suffering 50% losses in order to obtain their value. "We will demand a decision from the Prime Minister in six months," said Mustafa. Board members of the holding companies asked for support for cotton farmers and not the companies themselves The Ministry of Finance decided to provide subsidies for cotton worth EGP 200m to support textile companies.
