Solb Misr incurs $64mn losses, delays trading in EGX until 2017

Egyptian steel group Solb Misr has incurred losses estimated at 500 million Egyptian pounds (US$63.8 million) in 2015, Chairman Gamal El Garhy told Amwal Al Ghad Tuesday.

The company has suffered those losses since it had to operate with 25 percent of the capacity only during the first eight months of 2015, the chairman clarified.

Additionally, the increase in the prices of the gas used to operate factories as well as the shortage in the dollar liquidity necessary for importing materials were the reasons for those losses.

El Garhy added that Solb Misr has decided to delay trading in the Egyptian stock market until it turn to profitability instead of losses so as it could execute the postponed expansions, notably establishing two new steel factories. The official expected the group to start trading in  EGX in 2017.

The two new factories are set to operate with total capacity of 2 million tonnes annually and investments estimated at US$300 million.

By the end of 2015, energy problems have been solved partly as pursuant to state’s approach to provide power supplements necessary to operate factories that consume power  heavily within the upcoming period, chairman El-Garhy.

Solb Misr is an Egyptian Steel Group producing a wide range of steel by-products, semi-finished, finished and downstream steel, in keeping with international standards.