Egypt Kuwait Holding invests $180mln in subsidiaries in 2021

Sprea Misr’s sulphuric acid project is expected to come at an investment cost of $18mln

  

A source with the Egypt Kuwait Holding has exclusively told Daily News Egypt that the company has earmarked $180m for capital expenditures in its subsidiaries this year.

The funds will be channelled to: ONS, which will receive $80m; a medium density fibreboard (MDF) project, which will also receive $80m; Kahraba, which will receive $10m; and Sprea Misr’s sulphric acid project, which will receive $18m.

The source added that the company’s management has disclosed that the MDF project is on track to be inaugurated in the first half (H1) of 2022 with a preliminary capacity of 600m3 /day on one production line. The capacity is set to be doubled via a second line after 1.5 years of operations. The project is expected to cover above 400,000 m3 of Egypt’s yearly MDF import needs.

Meanwhile, Sprea Misr’s sulphuric acid project is expected to come at an investment cost of $18m, and will be self-financed from the subsidiary’s healthy net-cash position of EGP 1,500m.

The project will add $4-5m in attributable net income to Sprea Misr in H2 of 2022.

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