Gaza on verge of famine as war escalates, ceasefire talks stall    Gaza crisis, trade on agenda as Trump hosts Starmer in Scotland    Obama calls for aid access to Gaza, says 'no justification' for withholding food    Egyptian president follows up on initiatives to counter extremist thought    Egypt's SCZONE eyes deeper investment, port digitalisation ties with Singapore    Egypt's gold prices slip slightly on July 28th    Egypt's Housing Min. reviews HDP marketing plan    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egypt, South Africa pledge to deepen development cooperation at G20 meeting    Egypt's PM orders road maintenance review, tougher penalties to curb accidents    Egypt, Novartis explore expanding collaboration in oncology, cardiology    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Midar partners with Adeer to develop Boulevard project in Mostakbal City with EGP 70bn investment    Association of Real Estate Developers seeks urgent meeting over threatened land deallocation on Northwest Coast    Culture minister launches national plan to revive film industry, modernise cinematic assets    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    I won't trade my identity to please market: Douzi    Egypt welcomes 25-nation statement urging end to Gaza war    Sisi sends letter to Nigerian president affirming strategic ties    Egypt, Senegal sign pharma MoU to unify regulatory standards    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



18 subsidiary companies will see EGP 5bn investments in FY 2015/2016: CIHC Chairman
Investments financed through bank loans with projects serving as guarantees, says Reda El-Adl
Published in Daily News Egypt on 27 - 09 - 2015

Eighteen subsidiary companies of the Chemical Industries Holding Company (CIHC) will be targeted for new investments worth EGP 5bn throughout FY 2015/2016.
CIHC Chairman Reda El-Adl said the companies plan to finance the investments through bank loans, as they are unable to fund the initiative internally.
In an interview with Al-Borsa newspaper, El-Adl said that each subsidiary will guarantee itself with the banks through new projects, although the companies have yet to officially approach financial institutions. Procedures will begin in the near future, he said.
The company hopes to supply new investments to its subsidiaries, to increase their profits to EGP 1.4bn, marking a 108% increase from the EGP 761m recorded in FY 2013/2014, El-Adl said. He added that the companies hope to bring in approximately EGP 14bn in revenues over FY 2015/2016, compared to the EGP 9.9bn gained during FY 2013/2014, an increase of 41%.
According to CIHC's estimated budget, the subsidiaries plan to increase their export volume this year to approximately EGP 725m compared to EGP 629m for FY 2013/2014, and the EGP 635m for FY 2012/2013.
El-Adl said that the company's strategic vision aims to eliminate subsidiary losses, or at least reduce them dramatically for companies facing financial difficulties.
CIHC plans to reduce losses recorded by six subsidiary companies, including the General Company for Paper Industry, Moharem Press, Transport and Engineering Co, El-Nasr for Rubber Products, El-Nasr Transformers and Electrical Products, and Egyptian Co for Pipes and Chemicals.
El-Adl noted that banks agreed last week to open letters of credit for KIMA Fertilizers, and that a letter of guarantee was sent to Italy's Tecnimont to resume work on the project. KIMA Fertilizers is currently constructing a new factory, KIMA 2, which will use natural gas to produce 1,200 tonnes of ammonia daily at an investment of $730m.
However, Tecnimont stopped work on the project after KIMA was unable to open a letter of credit with banks for eight months. On 3 March, CIHC received a letter from Tecnimont informing the former that the KIMA Fertilizers restructuring project contract would be terminated, as KIMA withdrew the money owed to them.
Tecnimont nearly cancelled the project, despite KIMA already having made a payment worth $20m in January.
KIMA went to banks to open letters of credit on 5 March, just two days after the cancellation letter was sent, to resume negotiations with CIHC and Tecnimont. Tecnimont had requested that the technical and economic specifications be modified, a request which was refused by both KIMA and CIHC.
Tecnimont said its request for modifications was made as the project should have been completed in August 2014, according to the contract signed between the two companies in October 2011. The contract stipulated that the work be finished within 33 months.
The political events and economic crises that followed the 25 January Revolution hindered project work from being completed on time, and Tecnimont requested the modifications based on increased prices for raw materials, especially that of energy. This was met with complete refusal by the two companies.


Clic here to read the story from its source.