Ahmed Hassanein, the chairperson of Holding Company for Food Industries (HCFI), has revealed that the company has received seven offers from local and foreign companies to partner in three investment opportunities offered by the Ministry of Supply and Internal Trade to establish complexes for cooking oils.
Hassanein explained that the investment opportunities offered are represented in the Borg El Arab in Alexandria in an area of137,000 square meters. It includes factories for oil extraction, refining and bottling of oils and the production of jam. They are also in the Sohag region on an area of 120,000 square meters, in addition to the industrial complex in Amiriya dedicated to the production of industrial detergents.
He added that this comes within the framework of the directives of the political leadership to develop the oil industry and production as a strategic commodity necessary for the citizens.
The chairman of the Company said in his statements today, Sunday, that those offers submitted by a specialized advisory committee are currently being considered, and will be presented to Ali Moselhy, the Minister of Supply and Internal Trade, noting that the participation with the private sector may reach 76%.
Egypt’s consumption of oils amounts to about 2.4 million tonnes annually, and Egypt imports about 97% of its needs.
On the other hand, Hassanein said that the Holding Company for Food Industries aims to develop a giant oil terminal in the port of Alexandria, in order to increase its storage capacity from 72,000 tonnes to 250,000 tonnes.
He said that feasibility studies for the project are underway through a consulting office, expecting the study to be completed within two months and implementation to begin next February.
He added that within the framework of coordination with all parties, the Ministry of Transport has provided land in the port in order to accommodate the new tanks.
He explained that the station, which will be equipped with the latest modern technology, will allow companies operating in the private sector to obtain their needs of crude oil.
Regarding the strategy of the Company for Food Industries to develop subsidiaries and raise their efficiency, Hassanein explained that the companies that achieve losses were merged into other companies to create large new entities that help achieve profits. Al-Ahram Company for Complexes was merged with the Nile Company for Complexes, and the Egyptian Company for Starch, Yeast and Detergents was also merged with The Alexandria Company for Oils and Soap, and the Egyptian Company for Poultry Meat with the Egyptian Company for Fish Marketing, pointing out that the new entities will have an export rate of no less than 30% of the production volume.
Hassanein also indicated that a consulting office was hired to study the development of the Greater Cairo Bakeries Company, which is affiliated with the Holding Company for Food Industries, indicating that the company has many assets and is spread all over Egypt.
With regard to the establishment of the Qaha and Advina industrial complex in Sadat City, Hassanein explained that the cost of the project will amount to EGP 9bn.
The Holding Company for Food Industries is preparing to provide a strategic reserve of basic commodities closer to the month of Ramadan, in which consumption rates increase. Hassanein added that the company has a strategy since the Coronavirus pandemic that depends on forming a reserve that could last for four to six months.
