A study of the metal holders reveals that Egypt Aluminum has been harmed by the high prices
- Aluminum Association: Energy prices have doubled costs and we are suffering a crisis of arbitrary estimates of value added
Despite the governments decision to fix the electricity price for the industrial sector for a period of 5 years, there are several industrial sectors that consume electricity, demanding the necessity of reducing the electricity energy prices in light of an abundance of productivity that is matched by a need for the national industry. Reconsider the price of electricity.
First of all, Eng. Mohamed Al-Aidi, Vice Chairman of the Chamber of Engineering Industries of the Federation of Industries, believes that the governments decision to reduce the selling prices of electrical energy distributed to industrial activities by 10 piasters is considered good, but he confirms that it still does not meet the ambition of the productive sector in light of the increase in costs compared to competing countries Our.
The deputy head of engineering industries added to "The Seventh Day" that the price of electricity in Egypt in relation to a kilowatt costs the industry about 60 cents, and in return in Germany it costs them 40 cents and China 48 cents. The Egyptian product can compete externally in light of this noticeable increase in cost. Therefore, the government’s decision to reduce it comes in response to the requests of the factories in the aluminum and castings industry.
Al-Aidi emphasized that the Egyptian Aluminum Company, which is the main supporter of all related industries, has been suffering for a long time due to the large increase in electricity prices, as it does not keep pace with the global market, and here the factories relying on it also suffered greatly.
A recent study of the Metallic Holding Company, conducted under the supervision of the Egyptian Aluminum Company, revealed the challenges facing the aluminum industry, including moving electric energy prices, which is the biggest challenge for the company, especially since electricity is an essential component in the industry, and represents 40% of the production cost, and as a result of the high prices Recently, according to international specialized magazines, Misr Aluminum Company made Naga Hammadi the highest number in average electricity prices in the world compared to the most famous factories in the world, and according to the study, the kilowatt price increased from 10 piasters in 2004-2005 to 112 piasters in 2019-2020, and the study showed that The cost in Egypt is the highest in the world.
In a related context, Talaat Al-Shaer, head of the Aluminum Association in Mit Ghamr, revealed that the ammonium industry suffered greatly due to the high energy prices (gas and electricity), indicating that gas represents 70% of aluminum production costs and electricity represents 30%, and the final product costs are charged This led to a significant increase in its prices, which affected sales in the local market.
Al-Shaer added, in statements to Al-Youm Al-Sabea, that there are 150,000 workers in the ammonium industry from Mit Ghamr and the neighboring villages, and everyone is greatly affected by the current energy prices, as factories and small workshops are clearly suffering from electricity prices, which have become an unbearable burden.
The head of the Ammonium Association pointed out that the ammonium industry provides thousands of direct and indirect job opportunities, and there must be a solution to the crisis of the high price of electricity and gas, adding, "If the energy cost was only 1000 pounds before moving fuel and energy, then the cost would be 7 thousand pounds per day. We do not have the capabilities to bear these costs, and we have directed numerous pleas and letters to the Ministries of Industry and Electricity to find a solution.
Talaat Al-Shaer explained that the aluminum industry suffers from several major problems, the first of which is fuel and electricity, and secondly, the Corona crisis has hit sales in deaths and with the continued payment of salaries and monthly obligations, the factories have become impotent, and the third problem is the arbitrary estimates of taxes on factories and workshops, and tax evasion cases are being pursued. Small factories and workshops, so how for a workshop that does not have a large capital, a tax of up to 1.2 million pounds is estimated, but cases are made to evade them, which is a big problem that the Ministry of Finance must intervene to solve.