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FMT Steel in talks with two banks over EGP 20M loan

FMT Steel in talks with two banks over EGP 20M loan

ArabFinance: FMT Steel Company is currently negotiating with Commercial International Bank Egypt (CIB) (COMI) and Qatar National Bank Alahli (QNB Al Ahli) (QNBA) to borrow a sum of EGP 20 million, the company’s Managing Director Ahmed Hosney told Al Mal Newspaper.

This loan will be used to finance the construction works of FMT Steel’s new factory, which is expected to commence in 2022, Hosney highlighted.

The new factory will be built at a total cost of about EGP 50 million, he said, adding that the remaining sum will be financed by the company’s resources.

The company has not settled over the location of the anticipated factory yet as it is still looking for a suitable location for building the factory at industrial zones, the managing director pointed out.

Moreover, he said that the company decided to expand and establish the new factory, along with the existing one, due to the growing demand in the local market.

FMT Steel targets achieving sales of EGP 30 million by the end of 2021, as compared to 2020’s sales that stood at around EGP 25 million, Hosney remarked.

He also revealed that the company has pumped investments worth EGP 16 million since the beginning of this year; these investments were directed to finance FMT Steel’s working capital and to upgrade some of its production lines.

As for exports, Hosney said that FMT Steel exports about 20% of its production to the Libyan market only.

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04 Oct 2021
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