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[March 2002]
Tenders Invited for Egyptian Ceramic Companies
Two major Egyptian ceramic manufacturers are to be sold off in a privatisation move that it is likely to spark much interest. The General Company for Ceramic and Porcelain Products - Sheeni ('Sheeni') and Sornaga for Ceramics Company ('Sornaga') are introduced to the market by the Metallurgical Industries Holding Company (MIHC). in Cairo.Sheeni produces a full line of sanitaryware for the domestic and export markets, including basins and basin stands, shower stalls, bidets, WCs, squatting pans, flushing devices, urinals, foot baths, kitchen basins, bathroom shelves, soap dishes and toilet paper holders. During the fiscal year ended 30 June 2001, sanitaryware accounted for 76% of the total output of 9,626 tonnes and sales of this product line amounted to 52% of the company's turnover. The company also produces a full range of white and decorated table porcelain plates, dishes, tureens, bowls, cups and saucers - as well as decorated vases, statues and other household items.
Sheeni's production operations are conducted at a single facility located within the Mostorod-Kalioubilia industrial zone in the suburbs of Cairo. The company's net sales for the year ended 30 June 2001 were 31 million Egyptian Pounds (LE), broken down into LE 19 million for sanitaryware and LE 12 million for porcelain tableware.
It is judged that the simplest route to privatisation would be to split up the two different activities, which in any case are not generally found together and require different marketing strategies. It is expected that the physical separation of the assets and workforce of the existing company would be fairly easy and could be achieved within a comparatively short space of time.
Sornaga is the leading Egyptian manufacturer of unglazed terracotta tile products - floor, facing and roofing tiles - with a strong position in the domestic market.The products include unglazed terracotta floor tiles, facing or engineering bricks and roof tiles. Floor tiles are produced in different colours (generally red, but also beige) in various formats and thicknesses. The company recently introduced a hexagonal floor tile. Facing bricks are produced in beige, red, grey and black - all in one thickness (2cm) and one length (23cm) - but in different widths (4cm and 6cm). The production of roof tile is relatively new, having started up in September 2000. Sornaga produces interlocking Spanish style, end ridge cap, ridge cap and 'bamboo' roof tile.
The overall production capacity is 13,000 tonnes per annum. During the fiscal year ended 30 June 2001, output was 7,800 tonnes or 60% of capacity.
The factory is located in the Mostorod industrial zone in the suburbs of Cairo. Sales for the year ended 30 June 2001 were LE 7 million. The bulk of sales are generated by floor tiles (76% by value), where Sornaga holds 64% of the home market. It is proposed to privatise the company by tendering up to 90% of the shares owned by MIHC.
Full details on both of these companies - including background, financial details, factory specifications and current production machinery, markets - as well as the proposed sale details and tender procedures, can be obtained by e-mailing Mr Michel Girard (Team Leader, SOFRECO) at: sofreco@mihcsupport.com
ENDS