OCI Says Fertilizer Plants To Restore Gas Supply In 7 Days

Egyptian group Orascom Construction Industries – OCI (OCIC.CA) has stopped two fertilizer production lines at its Egyptian Fertilizer Co subsidiary alongside its Egypt Basic Industries Corporation (EBIC)’s greenfield plant because of gas supply problems.

OCI told the Egyptian Exchange (EGX) that the production should be restored to previous levels within seven days.

Egyptian Fertilizer’s two lines together produce about 1.3 million tons of urea per year, investment bank EFG-Hermes said in a research note.

OCI, the market’s biggest listed company, also said it had yet to resolve a dispute with the tax authority which wants the group to pay capital gains tax on the 2007 sale of an affiliate.

OCI has said the sale was legally tax exempt because the affiliate’s shares were listed on the EGX.

OCI shares were up 1.19% at 09:08 GMT.