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HCMI requests proposing Nasr Company reoperation project in Economic Summit - Daily News Egypt

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HCMI requests proposing Nasr Company reoperation project in Economic Summit

The official, who requested anonymity, said the company will cooperate with HCMI to own a right to management, since Nasr Company is the company working in the automotive industry. This will come amongst the ways to attract international partnerships to get the company running again.


Holding Company for Metallurgical Industries (HCMI) Chairman Zaki Bassiouny, who is also head of the committee for Nasr Company reoperation project, will send a letter to Minister of Investment Ashraf Salman requesting the project be added to the set to be presented in the March Economic Summit, according to a committee official.  (AFP Photo)
Holding Company for Metallurgical Industries (HCMI) Chairman Zaki Bassiouny, who is also head of the committee for Nasr Company reoperation project, will send a letter to Minister of Investment Ashraf Salman requesting the project be added to the set to be presented in the March Economic Summit, according to a committee official.
(AFP Photo)

By Ahmed Amer

Holding Company for Metallurgical Industries (HCMI) Chairman Zaki Bassiouny, who is also head of the committee for Nasr Company reoperation project, will send a letter to Minister of Investment Ashraf Salman requesting the project be added to the set to be presented in the March Economic Summit, according to a committee official.

The official, who requested anonymity, said the company will cooperate with HCMI to own a right to management, since Nasr Company is the company working in the automotive industry. This will come amongst the ways to attract international partnerships to get the company running again.

He added that should negotiations fail, the committee will offer to operate the automotive factory through Anbar 4, which will need to change 90% of its pipeline equipment. It will also offer to develop the pipeline against rust, so that the committee can rent the factory to other companies or operate for the purpose of assembling parts for other companies.

According to the official, the government settled on a plan to re-operate and rehabilitate Nasr Company to manufacture cars. This will occur through a joint venture between HCMI and one of the international companies that would be able to manufacture as per the economic requirements for car manufacturing.

The ministerial committee, consisting of the Ministries of Investment, Foreign Trade and  Industry, and Military Production, decided the best alternative for re-operating Nasr Company is through the experience of Arab Company for Automotives. The latter was established in partnership with Arab Organization for Industrialization, and Chrysler.

Recommendations on the company’s restructuring included the establishment of a company through public shares, and offering parts of the company to the private sector. This would occur on the condition that the company would later negotiate with the international company. The ministerial committee, however, settled on establishing a direct joint company between HCMI and one of the international companies to guarantee a technical international partner from the start of the project.

The Ministry of Foreign Trade and Industry suggested that the new factory’s production capacity should not be less than 75,000 cars annually, which would be in line with the market needs. The new company will target both local and regional markets through making use of the free trade agreement between Arab and African countries. However, this is on the condition that it would be within the development of automotive industries programme and establishing a successful national industry through granting tax incentives or subsidies in various means. This is in order for it to be able to compete with the Arab countries, which are working hard to dominate the African market. These countries are Morocco, South Africa, and Nigeria.

 

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https://www.dailynewsegypt.com/2015/02/16/hcmi-requests-proposing-nasr-company-reoperation-project-economic-summit/
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