Sunday 19 Jan
Prime Minister Moustafa Madbouly witnessed the signing of a contract between the Egyptian Chemical Industries Company (KIMA), a subsidiary of the Chemical Industries Holding Company, and Al-Sharq Real Investment, an Egyptian company with Saudi investments, to operate and manage an electric arc furnace for the production of silico manganese alloys.
This contract was signed between the Egyptian Chemical Industries Company (KIMA), affiliated with the Holding Company for Chemical Industries, a subsidiary of the Ministry of Public Business Sector, and the Real East Investment Company, an Egyptian company with Saudi investments, in the presence of Engineer Mohamed Shimi, Minister of the Public Business Sector.
The contract aims to re-start a
previously idle electric arc furnace at Kima, enabling the production of
high-quality silicon manganese alloys, a crucial component in steelmaking.
Al-Sharq, which has secured manganese ore concessions in the Abu Shaar region,
will operate the furnace using the latest technology and techniques.
Minister Shimi, emphasized that this
partnership is a prime example of public-private cooperation, designed to
maximize the value of state assets and reduce Egypt's reliance on imported
steel components. The revitalized furnace, which underwent a 53 million
Egyptian pound refurbishment, is expected to produce 18,000 tons of silicon
manganese alloys annually, generating approximately $1.8 million in revenue for
Kima.
Shimi noted that Al Sharq Company
is committed to using and maintaining the furnace for the entire duration of
the contract. The company is also obligated to carry out all routine and
necessary maintenance to ensure the safety and efficient operation of the
furnace. This includes making any required improvements and adhering to
industrial safety, health, and environmental standards in the operation of the
furnace, including the disposal of waste.
This contract is for a period of seven years, commencing from the date of final acceptance of the furnace. It may be renewed for similar periods subject to a new agreement between the parties six months prior to the end of the current contract.
