The company’s chairman told Al-Mal: Al-Shaheen for Trade and Industry aims to increase its exports to 50% next year
Engineer Muhammad Shaheen, a member of the Board of Directors of “Al Shaheen” Trade and Industry Company, revealed the details of the expansion investment plan his company has set during 2023 by increasing the import of raw materials from abroad and doubling the production of “tin containers” produced by his company’s factories .
Shaheen said – during an interview with Al-Mal – that his company plans to export 50% of its production next year, compared to 30% this year, to a number of African markets and Middle Eastern countries.
It is worth noting that the company has been producing “tin cans” for more than 45 years, as it owns two factories in Abu Zaabal and Tenth of Ramadan, and recently imported “scissors” for cutting tin cans into different sizes of tin containers, as required by food companies .
Our current production capacity is 350 million packages per year
Shaheen added that his company aims to increase its imports of raw materials of “tin” requirements from countries: “Europe, China and Japan”, to a total value of around 350 million pounds in early 2023, compared to 200 million in 2022.
Al Shaheen imports 11,000 tons of white sheet, with an average per coil of 5 to 6 tons, with a total of 2,500 iron coils per year.
He added that the company’s production capacity is 350 million cans per year, of all sizes and dimensions required, at a rate of 29 million per month, given that it is one of the oldest companies operating in the can manufacturing sector in Egypt, and has extensive experience in the field production.
He pointed out that his company produces all sizes of packages of “food and chemical dyes”, pointing out that every package needed by companies dealing with food, chemicals and others is covered by the necessary quantities monthly and annually.
He pointed out that the company owns a factory in the area of ”Abu Zaabal” on an area of 2,600 square meters, because it contains a “hanger” and 3 floors for production, and it was developed at the beginning of this year by the import of a line for cutting cans with the establishment of 3 lines and grooving of cans from income. As well as 2 printing lines.
He added that the company owns another factory in the industrial zone of the 10th of Ramadan in the Governorate of Sharkia on an area of 10,000 square meters, pointing out that it consists of 4 floors of different sizes that are intended for the production of tin packaging. on the highest international model competing with all international companies on Egyptian soil.
He pointed out that the total production lines in the two factories connected to the company amount to about 15 lines for the production of cans, 5 lines for the production of lids, in addition to 3 lines for varnishing, 2 lines for printing and a line for scissors that works to cut different sizes of packages that are requested from the company monthly according to the received contracts.
Tin containers are used to package products such as: “honey, beans and sauce” or other foodstuffs that are stored in tin containers for export abroad or distribution to local markets.
Shaheen explained that the number of workers in the company was about 230, present throughout the year, in addition to 5 cars to transport the canned goods from the factories to the company’s stores to delivery to customers.
He emphasized that Egypt is a good strategic location for neighboring Arab markets in terms of tin packaging prices, including the Emirates, as it helps them compete in tin packaging prices.
The lack of raw materials and the rise of the dollar have increased the value of our imports from abroad
He pointed out that the unavailability of raw materials and high prices in dollars caused the import of materials from abroad at high prices, which affected the placement of products on foreign and domestic markets.
Regarding the increase in the price of the dollar against the Egyptian pound, Shaheen indicated that the volatility of the price has affected the company’s sales, especially since imports are in dollars and sales in Egypt are in pounds, which has caused problems related to production and sales costs, pointing out that the lack of dollars at the banks led to a lack of product price stability on the domestic and foreign markets.
He stressed that some non-remittance buyers come to Egypt to arrange products in pounds, which has caused heavy financial losses for manufacturers, especially since imports are done in dollars and not in Egyptian pounds.
Regarding the company’s borrowing from banks to finance the import of raw materials, Shaheen emphasized that his company has deals with some banks only for financing raw materials, stressing that he does not intend to negotiate monetary amounts from banks in the coming period. for at this time no allowance was made to the company. .
He called for the necessary strategic support to be provided to producers of “iron sheets” by working on the production of some requirements that are imported from abroad, and his company supports this, while procuring dollars in large quantities so that they do not buy them from the black market at high prices.
In another context, Shaheen confirmed that the volume of import of iron coils used in the production of tin packaging from abroad was about 80 thousand tons per year for all companies dealing with tin packaging, emphasizing that the number of large companies in this field is about 6, medium 10 and small. 20.
Regarding the availability of statistics showing the number of containers produced by all factories operating in the tin packaging industry, he explained that it is not possible to limit the production of factory containers in Egypt, given that the production of factories varies from one factory to another. , and this does not help the inventory process regarding the full production of tin can factories in Egypt. .
It is important to note that tin containers are one of the most commonly used items in various food factories that produce many canned foods.