The Misr Chemical Industries Company (MICH) is planning to obtain a new Evaporation Unit, worth EGP 90m-EGP 130m, and which increases liquid soda concentration and its volumes by 5%-10%.
The aim of the new acquisition is not just to increase volumes, which will be offset by the decline in prices once the demand and prices surge related to the novel coronavirus (COVID-19) pandemic settles down. It means that the company will be able to increase efficiency, as its already existing unit is suffering the effects of age, and wear and tear, and could hinder production if left in operation longer.
The new evaporation unit will be financed by debt from the Egyptian Environmental Affairs Agency (EEAA). It is worth mentioning that MICH has no debt on its current balance sheet, and once that loan is issued it will be the only one present on the company’s financial statement. MICH expects to maintain its current local market share of 25%.
The company operates at a utilisation rate of 66%, with their two main products being Liquid Caustic Soda and Chlorine Gas. In 2017, the main production units were replaced to increase production capacity by 21%, to ensure that MICH could reach current production capacities of 68,000 tonnes/annum for liquid soda and 60,000 tonnes/annum for chlorine gas.
MICH specialises in producing chemicals used in disinfectants, textiles, chemicals and petroleum industries, medicines, as well as many other sectors. The company has a wide range of products including: Liquid and Flakes Soda; Chlorine Gas; Hydraulic Acid; Hydrogen Gas; and Hypochlorite Sodium.