CAIRO: Haykala Investment Managers has acquired controlling stakes in the Sixth of October Light Sections Company (SOLS) and the Sixth of October for Metallurgical Industries Company (SOMICO), according to a press statement.
The two downstream steel processing companies provide a wide array of steel products for construction, automotive and home appliances sectors in the form of light steel sections and cold rolled coils.
Hisham Abdel Fattah, Haykala’s managing director, announced that these acquisitions represent Haykala’s entry in the building materials and steel industries, in which other acquisitions will be targeted.
SOLS was established in 1988 by the Faltas family and engages in the production of hot rolled angles and steel sections where actual annual production capacity reached 100,000 tons. These products are widely used in the construction of steel structures as well as electricity and telecommunications towers. They are also exported to over 10 countries in the Middle East and Europe.
SOMICO was later established in 1996 and engages in the production of cold rolled coils, which are used in a wide variety of industries such as automotive and home appliances. The company’s total annual production reached 120,000 tons.
Ayad Faltas, the group’s CEO, stated that Haykala aims at increasing and improving the performance of both companies in addition to adding a new galvanizing line producing hot-dip galvanized steel sheets, which will primarily cater to the undersupplied local and Arab markets, with an annual capacity of 200,000 tons.
Faltas will remain on the board of directors due to his industry experience and know-how.
Haykala is planning to expand the company’s operations and inject LE 170 million for the expansion of the business and diversifying both companies’ product mix.
