Spinning and weaving companies are the most unprofitable businesses in the public sector, the Minister of Public Enterprise Sector, Hisham Tawfiq said, adding that the ministry has a development plan prepared by a group of technical advisers to restructure the sector.
During the American Chamber of Commerce (AMCHAM) conference held on Wednesday, he added that the development of public spinning and weaving companies requires up to $2bn, noting that the required financing is available but “we need major consultants for the project.”
Tawfik called on foreign companies operating in this sector to offer their experience in promoting these companies similar to spinning and dyeing companies, adding that the ministry has already received offers from Italian and German companies.
“We looking forward towards signing partnership deals with foreign partners, including US companies, in tourism and electronics sectors,” Tawfik stressed.
The minister also met with a delegation of US companies at the AMCHAM, where he presented the ministry’s strategy for the development of spinning and weaving companies.
The public enterprise sector includes 121 companies, of which 73 companies achieved profits of EGP 14.8bn, while 48 companies incurred losses of EGP 7.4bn.
The development plan includes three axes. First, a number of measures will be applied to solve the problems facing 26 loosing companies, mostly industrial companies, whose losses in June 2017 were about EGP 6.7bn, which account for 90% of the sector’s total losses.
The second axis includes choosing five companies that make profits and can be offered on the stock market.
The third axis includes identifying the companies which achieve less than the required profits, and the ministry will inject new investments into them.