The Egypt Aluminium Company (Egyptalum) has revealed that six European and Chinese companies have submitted bids on the tender for a car wheel rims production line.
On 21 December, Egyptalum announced the opening of the submissions window on an international tender for the production of car wheel rims, with the session to reveal envelope contents held on 10 January.
Recent annual business results for the company showed its shift to losses during fiscal year (FY) 2019/20, as the company incurred a net loss of EGP 1.63bn during the year ending June 2020. This compared to a profit of EGP 570.9m during the previous fiscal year.
The company’s revenues fell sharply to EGP 7.25bn during FY 2019/20, compared to EGP 12.1bn during the previous fiscal year.
Egyptalum attributed its losses to the increase in cost factors in the production process, particularly the electrical, in addition to the decline in the dollar exchange rate against the pound. It also noted the sharp decline in the base price of the metal on London’s International Metal Exchange.
The company suffered from low returns on financial investments as a result of low rates of return, and waived a large part of its financial investments to pay its financial obligations. The economic impacts of the novel coronavirus (COVID-19) pandemic have also had an effect on the company’s revenues during the second half (H2) of FY 2019/20.