The Holding Company for Cotton Spinning and Weaving, a public sector enterprise run by the Government of Egypt, has provided investments worth EGP 150 million (approx $ 19.15 million) to eight subsidiary companies this year, according to Egyptian media reports.
The company is supplying urgent investments to 8 subsidiary companies to boost the production capacity and make the number of production lines, which have been held up for a long time, operational.
The holding company will be funding the new investments from its treasury, which will be utilised for buying equipments and machineries over a maximum period of three months. The investments will flow throughout the financial year 2015-14 and the restructuring is expected to take place in around one year.
The Egypt based company plans to increase total profits among its subsidiary companies from EGP 3.4 billion ($ 434 million) in financial year 2014-15 to EGP 4.5 billion throughout 2015-16. The company also hopes to decrease losses by EGP 400 million ($ 51 million) approximately during this period.
The subsidiary companies who will be receiving the investment are EL Nasr for Wool & Selected Textiles; Damietta Spinning and Weaving; Daqhalia Spinning and Weaving; El-Nasr Spinning and Weaving Shourbagui; Stia; Misr Spinning and Weaving Company in Mahalla; El-Nasr Spinning, Weaving, and Dyeing; and Misr Spinning and Weaving in Kafr El Dawar. (HO)