Government Explains Why Egypt’s Iron and Steel Company to be Liquidated

The Ministry of Business Sector announced today, Saturday, the reasons for the liquidation of Egyptian national company for Iron and Steel.

The ministry said in a statement that the liquidation decision came after "the failure of many attempts to stop the bleeding of losses, amounted to 8.5 billion pounds (about 540 million dollars) on June 30," while the company's debts reached a similar amount, according to the Al-Ahram Gate website.

The statement stated that the company's extraordinary general assembly approved the decision on January 11, explaining that the first priority now is to preserve the rights of workers.

The company said that the poor technical condition of the equipment led to a decrease in production quantities in recent years and an increase in the cost of production compared to the selling price, according to the statement.