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Sheeni partially suspends activity to avoid inventory accumulation - Daily News Egypt

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Sheeni partially suspends activity to avoid inventory accumulation

Company’s ceramic, porcelain factories remain operational


The General Company for Ceramic and Porcelain Products – Sheeni has decided halting its sanitary ware factory for two weeks due to no market demand. However, the company’s ceramic and porcelain factories will operate normally as the market demand has been affected by the coronavirus (COVID-19) pandemic. This aims to maintain liquidity and avoid stagnant stock in light of the current global economic conditions.

Sheeni is a subsidiary of the Holding Company for Metallurgical Industries affiliated to the Ministry of Public Enterprises Sector.

Sheeni’s board of directors recommended hiring a specialised consultant to study the investment opportunities at the company’s porcelain and sanitary ware factories.

The company has suffered EGP 13.19m losses in the first half (1H) of the fiscal year (FY) 2019/20, compared to EGP 9.28m losses in 1H 2018/19.

The company’s revenues increased to EGP 160.09m in 1H 2019/20, compared to revenues of EGP 118.7m in 1H 2018/19.

An official source at the company said a possible extension of the sanitary ware factory’s temporary suspension will be discussed after the end of the two-week halt. This would take into account an evaluation of the developments due to the coronavirus outbreak.

The source said the company’s activity includes three factories:

The first factory for the production of ceramic Paljlaz has a production capacity of 7m square metres per year (Ceramic Marseille), of which 30% are exported to more than a dozen Arab and African countries.

The second factory for sanitary ware (bathrooms) has a production capacity of 9,000 tonnes annually, of which 50% are exported.

The third factory for porcelain housewares exports 10% of its production to some European countries.

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https://dailyfeed.dailynewsegypt.com/2020/04/21/sheeni-partially-suspends-activity-to-avoid-inventory-accumulation/
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