Upper Egypt Mills Company allocated EGP 50m to utilise two plots of land for residential buildings in Sohag early next year, said chairperson Rabie Kulaiay.
He added that construction will begin in January and is expected to be completed in two years; the buildings will include 130 apartments, as well as stores.
The company is still marketing to rent out 100 units in its residential buildings in Tahta and Gerga in Sohag governorate on an area of 2,000 sqm. He expects all units to be rented by April.
The company is interested in adopting a policy of renting housing units in an attempt to create a permanent source of revenue for the company, instead of selling the units at once.
The company has succeeded in achieving an earnings growth of 15% in the fiscal year (FY) 2015/2016 to achieve a net profit of EGP 107.5m, compared to EGP 93.8m in the previous fiscal year.
Kulaiay attributed the earnings growth to the increased sales of flour and the higher cost of flour milling products.
Moreover, Upper Egypt Mills aims to achieve a net profit of EGP 66m in the FY 2016/2017 and implement an investment plan worth EGP 42m.
The company has 17 mills in the provinces of Upper Egypt. It is one of the Ministry of Supply’s largest mills. The production capacity amounts to a total of 250,000 tonnes per year of wheat.
The company’s issued and paid-up capital is EGP 70m, divided into 7m shares with a nominal value of EGP 10 per share.