Factory aging and poor liquidity behind the decline of "transport and engineering"

Factory aging and poor liquidity behind the decline of "transport and engineering"

Transco, a subsidiary of the Chemical Industries Holding Company of the Ministry of Investment and a pioneer in the industry, will be transferred to the Holding Company for Maritime and Land Transport from July 1.

The company was established in 1946 as an engineering engineering company in the field of transport. The company started production of tires in 1956 under the trade name “Eagle”.

After that, the company became specialized in the production of all types of vehicle tires (camel riding, semi-transport, buses, transport, trailers, agricultural, bicycles, motorcycles) as well as its internal pipes and hoops.

However, according to the financial statements, the company lost 320 million pounds at the end of last fiscal year, while its losses rose to about 1.5 billion pounds.

According to the planning budget of the company, the production value for the fiscal year 2018-2019 was estimated at 338 million pounds compared to 99 million pounds last fiscal year.

The sales value is estimated at 330 million pounds compared to 102 million pounds last fiscal year, and the company aims to export tires to Saudi Arabia and other countries worth 7.8 million pounds.

According to the budget, the transport and engineering company faces the problem of the aging of production lines and frequent breakdowns, which is reflected in the increase in production costs in addition to the lack of liquidity for the purchase of raw materials and the irregular supply of fuel, unlike the change in the market direction of modern tires and types of tires not produced by the company.

According to the budget, the Board of Directors of the Holding Company approved the financing of an operational plan for the factories at LE 101 million, for the continuation of the production process in order to maintain a national product of tires in the local market.

The company also has a pilot study to establish a tire factory with the latest technology currently available with one of the international companies.

The Extraordinary General Assembly of the Company decided on 1 October 2017 to continue the performance of the company despite the large losses, which require closing according to Article 28 of Law 203 for the year 91, but the Assembly considered its acquisition, and study the transfer of lines to Amreya, Semouha for real estate developers.

It was agreed with the chemical holding company, to find an investor to invest in the company to establish a new company with the latest technology with the survival of the brand Eagle.

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