CAIRO: The state-owned Chemical Industries Holding Company (CIHC) plans for 5.1 billion EGP new investments during the next Fiscal Year 2014-15 at the chemical industries sector, CIHC board chairman Yahiya Mashaly said Sunday.
The investment would achieve more than a six percent growth rate, estimating at “about 36 million EGP of additional net profit,” he added.
The 5.1 billion EGP new investments are represented in setting new ventures, restructuring out-dated subsidiaries, and providing technical probable technical support, Al-Mal Business Daily reported.
“Besides achieving a six percent growth rate, CIHC targets surging its participation at the public fund to 23 billion EGP including tax, employees health insurance, customs fees, and others,” Mashaly said.
New investment at the chemical industries sector was decided along with the government’s strategy to promote the sector since it is considered one of the promising sectors in Egypt. It could also be the core factor to increase Egypt’s exports in the upcoming period.
Over the new investments, 12 billion EGP are expected from CIHC and its following 18 subsidiaries, compared to 9.5 billion EGP of 2012-13 fiscal year as total revenues of the commercial activity. CIHC total exports may reach 711.5 million EGP in the next fiscal year 2014-2015, compared to 635.2 million EGP of the last fiscal year 2013-2014.
During ten months of current fiscal year 2013-14, CIHC net investments at the petrochemical sector increased to more than 1 billion EGP, he said. Such new investments will create more job opportunities, boost Egypt’s revenues of this sector, and rebound economy again.
In its last monthly report, the General Authority for Imports and Exports Control announced March 2014 that the chemical industry exports topped the list with a total value of 2.2 billion EGP, Al-Ahram news gate reported.
The achieved 2.2 billion EGP represents more than 20 percent of Egypt’s non-petroleum total exports, head of the Chemical and Fertilizers Export Council Walid Hilal said.
The chemical industry exports grew by 14 percent compared to March last year, he said and that the council aims to achieve 50 billion EGP in exports by the end of current year.
The importance of chemical industry sectors is that it would include more than 85,000 workers, achieve more than 40 billion EGP exports annually, and increase Egypt’s revenues of hard currencies, according to the Industrial Modernization Centre.