Daily News Egypt

Premiere to serve as financial advisor for establishment of iron, steel plant in Dubai with investments of $400m - Daily News Egypt

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Premiere to serve as financial advisor for establishment of iron, steel plant in Dubai with investments of $400m

The plant's output will reach 500,000 tonnes per year

Ahmed Abdelmoghny, managing director of Premiere, said that his company will serve as financial consulting for an Emirati company working in the field of iron and steel production, in order to establish a new factory for iron and steel in the Jebel Ali area of ​​Dubai.

Abdelmoghny explained that the factory is set to cost $400m, which is the average cost of medium-sized iron and steel factories.

He added that the target production capacity in the first stage is estimated at 500,000 tonnes of steel per year. Later phases will see production rising to 1m tonnes, according to performance indicators and sales, which will determine the economic feasibility of expansion and the optimal timing.

He pointed out that the Emirati company intends to start negotiations with an Italian company to supply production lines and equipments required for the new plant.

He stressed that the role of Premiere includes preparing feasibility studies for the establishment of the factory, reviewing financing mechanisms whether loans or contributions, and promoting for the factory among investors in the Gulf region and central Asia to attract investments.

Daily News Egypt had earlier quoted Abdelmoghny as saying that Premiere sought to raise EGP 3.5bn for an Egyptian cement company to establish a plant on the Ain Sokhna Desert road to produce 1.5m tonnes of clinker per year, a raw material used in the production and manufacture of cement.

Abdelmoghny stressed that promoting the Egyptian plant in the Gulf is still ongoing to find financing mechanisms, noting that Premiere held several promotional meetings with several investment funds in the United Arab Emirates and Kuwait, to attract money for the cement industry.

The Industrial Development Authority (IDA) offered eight cement licences for 2017 for the establishment of grey cement factories in several governorates, including Beni Suef, Minya, Qena, Sohag, Aswan, New Valley, and Suez, with productivity of 2m tonnes per year for each project.

Three Egyptian companies were awarded the licences, including Ahmed Abou Hashima’s Egyptian Cement Company, South Valley Cement Company SAE (SVCC), and El Sewedy Cement Company. Each of the three companies was awarded one licence.

Premiere had signed a number of protocols to provide financial consulting services for several projects, including a cooperation protocol in September 2016 with Masarat for Engineering Consultancies, which is specialised in transportation. The protocol considers forming a consortium to study the financing and implementation of projects for passenger and cargo trains, dry ports, and mass transit for the private and public sectors in Egypt, the Middle East, and North Africa.

In August, Premiere also signed a protocol with New Avenue to implement and manage joint projects and enter strategic alliances with investors and real estate developers for implementing real estate projects.

Premiere works in the field of financial consultancy for feasibility studies and securing financing packages, whether through the banking sector or contributors. The company also assists in merger and acquisition deals. Premiere is a subsidiary of Premiere Holding.

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