Modern Shorouk Printing & Packaging plans (SMPP) will start operating Motaheda Carton Factory for cardboard manufacturing in Sadat City in September 2016.
The company is now working on the final steps to install the production lines in order to begin the factory’s operation trial to produce 130,000 tonnes of paper duplexes annually, according to sources with the company. SMPP received a loan worth EGP 142m to complete construction work, as agreed with the Arab African International Bank (AAIB).
Daily News Egypt previously reported in August 2015 that SMPP repealed their agreement with the International Finance Corporation (IFC) regarding a loan of $15m in order to receive it from the Arab African International Bank (AAIB) in Egyptian pounds rather than US dollars so as to avoid the financial burdens of dollar loans that follow the expected rise in the dollar against the pound.
The total loans of EGP 284m SMPP received will raise the necessary funding for running the factory, equally divided between AAIB and HSBC, to EGP142m each. The remaining amount will be provided by company’s internal sources.
SMPP is currently discussing the expansion of Motaheda factory following the operation, however it has not yet decided which production capacities would be added.
According to the disclosure form issued by SMPP in December 2015, the company has a capital of EGP 119.1m distributed into 11.91 shares with a nominal value of EGP 10 per share. The National Company for Printing owns 89.91% of the shares.
SMPP made a net profit of EGP 8.73m in the first nine months of the fiscal year (FY) 2015/2016 compared to EGP 13.27m during the same period in 2014, recording a 34.2% rate of decline.
