Egypt closes national iron and steel company ahead of liquidation

Egypt yesterday shut down the Iron and Steel Company ahead of liquidating the oldest public sector company in the country, local media reported.

Al-Masry Al-Youm newspaper said the iron and steel factories in Helwan, south of Cairo, are being closed ahead of liquidating the company whose losses are estimated at nearly $450 million.

The newspaper quoted the deputy head of the Egyptian Workers’ Union, Khaled El-Feki, as saying: “Negotiations are currently underway with the ministries of the public business sector and manpower, regarding the value of compensation to the company’s 6,200 workers.”

Meanwhile, the Masrawy news site reported unnamed labour and union sources as saying that “the company’s management has informed workers in all sectors not to come to their jobs as of Monday until a compensation agreement is reached.”

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On Sunday, hundreds of the company’s workers protested, demanding compensation ranging between 400,000 and 700,000 Egyptian pounds ($25,400-$44,500) per worker.

The Ministry of Public Business Sector has already offered compensation ranging between 225,000 and 450,000 Egyptian pounds ($14,300 and $28,600).

The Egyptian Iron and Steel Company, founded in 1954 by the late President Gamal Abdel Nasser, is the largest and oldest public sector company in Egypt, and the first iron and steel company in the Middle East.