Egyptalum’s tender for car wheel rims production line receives 6 bids from European and Chinese firms

The Egypt Aluminium Company, Egyptalum has disclosed that six European and Chinese companies have submitted bids towards the tender for a car wheel rims production line.

Egyptalum publicized on 21^st December’20 for 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^th January 2021.

The later annual business results for the company demonstrated its transition to losses during the fiscal year 2019/20, as the company incurred a net loss of EGP 1.63 billion for the year ending June 2020. This was compared to a profit of EGP 570.9 million during the previous fiscal year.

The company’s revenues dropped sharply to EGP 7.25bn during FY 2019/20, compared to EGP 12.1billion during the previous fiscal year.

Egyptalum accredited its losses to the rise in cost factors in the production process, particularly the electrical, in addition to the decline in the dollar exchange rate against the Egyptian Pound. It also highlighted the steep decline in the base price of the metal on London’s International Metal Exchange.

The aluminium 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 Covid-19 pandemic have also had an impact on the company’s revenues during the H2 of FY 2019/20.