Engineer Mohamed Hassanein Radwan, CEO and Managing Director of the Chemical Industries Company “Kima” revealed that the opportunities are favorable to export 100% of the factories’ production of fertilizers abroad in light of the great demand for fertilizer and its high price, which contributes to providing hard currency, “we are in dire need, whether Kima or the Egyptian economy in general.
Radwan added to “The Seventh Day” that the price of $5.75 per million thermal units is a very suitable price, as Kima factories cannot bear any increase on this price, especially since it is tied up with a large loan of 11.6 billion pounds, of which only 3 payments have been paid, and it continues until a year 2034, explaining that in addition to that, there is an average annual cost of the company amounting to about 500 million pounds, in addition to a large workforce that was working in the suspended Kima 1, and its salaries are borne, and therefore it is important not to burden the new project with burdens that hinder it.
Radwan indicated that rationalizing the consumption of fertilizer locally is the best solution to launch exports so that 25% of the production is handed over to the Ministry of Agriculture instead of 55%, which contributes to solving Kima factories’ financial problems, pointing out that it is important not to apply the new price equation to Kim and link it to the export price The variable is monthly, especially since Kima is a giant national project in Upper Egypt and the company is 100% state-owned.
Regarding his recent visit to Japan, he indicated that he visited Hitachi, which manufactures an important spare part for the Kima 2 factories, to test it before shipping it to Egypt, in the presence of the Italian company Technoment executing the Kima 2 project.
Regarding the latest developments in the repayment of the loan, he revealed that the largest installment of $30 million and 400 million Egyptian pounds was recently paid, pointing out that the rest of the installments are paid twice annually, and the value of each installment ranges between 200 million pounds and 15 million dollars.