Egypt Metalco to undergo liquidation over mounting financial losses

The decision was published in the Official Gazette on Sunday.

​Specialising in metal product manufacturing, Metalco incurred staggering losses of approximately EGP 31 million in 2023 alone.

By the end of that year, Metalco's accumulated losses swelled to EGP 1.3 billion, representing a 975 percent of shareholders' equity.

Moreover, the company's debt ballooned to EGP 1.4 billion, while its working capital and total investment stood at a negative EGP 1.335 billion and negative EGP 1.250 billion, respectively.

Metalco is a leading metals company that has been in operation since 1968.

The company has implemented numerous infrastructure projects over the years, including national projects such as bridges, silos, and tanks, in addition to manufacturing electricity and transmission towers.

Metalco is the latest in a series of state-owned companies liquidated in recent years after suffering significant losses.

The liquidation of Metalco comes as a parliamentary committee has urged the new Ministry of Public Business Sector to classify its assets into three categories.

These categories are profitable companies, loss-making companies with potential for future profitability and persistently unprofitable businesses.

The move also aligns with Egypt’s State Ownership Policy Document, which aims to bolster private sector involvement in public investments.