Liquidation and closure of one of the most famous factories in Egypt and the Middle East since the time of Abdel Nasser

The Extraordinary General Meeting of Al-Nasr Company for Coke and Basic Chemicals, which is part of the Iron and Steel Industry Holding Company, decided to dissolve and liquidate the company with the necessary measures.

The memorandum presented to the General Assembly included a study by the global consultant DMT, an April 2021 report by the Board of Directors of the Coke Company on the poor technical condition of the batteries and the deterioration of all the company’s plants, equipment, machinery and building, the suspension of Coke operations from 07.08.2021 and the report Environmental Protection Agency on non-compliance of the company’s environmental conditions with the provisions of the Law on the Environment, in addition to the report of the Central Audit Organization. June 30, 2022 on the existence of fundamental doubts about the going concern of Nasr Coke Manufacturing Company.

In this context, Engineer Mahmoud Esmat, Minister of the Public Sector for Business, ordered that workers’ compensation be given priority in the work to liquidate the factory.

The Association confirmed the continuation of the operation of the water treatment plant of the Coking Company, in order to supply neighboring plants, provided that the work will be carried out by technicians of the Coking Company, and the use of technicians with expertise at the plants of the companies included in the Holding will be studied in accordance with its needs in this area.

On the other hand, the company’s Ordinary General Meeting approved Nasr Coke Manufacturing Company’s revised results, as noted in the Central Audit Organization’s report, with a loss of £339.3m for the 2021/2022 financial year.

The memorandum presented to the General Assembly of the Al-Nasr Coke Company included the reasons and motivations for the decision to liquidate, including the issuance of Prime Ministerial Decree No. global consultant to express an opinion on the possibility of the company’s business continuity and investment, as it requested assistance from the holding company of the global consultant DMT, and its study was completed, emphasizing that the investment cost of building 2 batteries to produce 1.3 million tons of coke is 644 million euros, in addition to the investment needed to upgrade the handling and sorting equipment, which is estimated at 100 million euros, equivalent to a total investment of about 15 billion pounds.

The study indicates that investments in the creation of coking coal batteries for the production of coke are associated with the presence of complex technological lines for the production of steel using blast furnace technology, where coke makes up approximately 47% of the cost of iron production. .

The Coke Company was established in 1960 and began production in 1964, and was mainly dependent on the export of its products, on its neighbor, Iron and Steel, which is mainly dependent on the company’s products, especially: “Coke, in operation and recycling of its furnaces, a company that the government has decided to liquidate in the first half of 2021, and the coke company will face the same fate.”

Coke was founded during the late President Gamal Abdel Nasser in 1960 with the aim of providing coal for iron and steel production. Egyptian companies created during his reign to serve the depleted Egyptian economy after the July Revolution of 1952.

Source: Al-Masri Al-Youm.

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