The tender for the sale of the Egyptian joint stock company, Transport & Engineering Co. (TRENCO) has been extend through the first of July, according to a statement by the chairman of the board of the Egyptian Engineering Industrial Holding company, Ibrahim Sebeiay.
The Egyptian government undertook the privatization of TRENCO in December 2000, seeking an investor to purchase up to 90 percent of its shares.
The recent decision has granted additional time for investors to evaluate the company’s status, according to Al-Gumhuria daily. Thus far, seven local and international groups have submitted bids to purchase the company, including the American Michelin company.
Sebeiay added that the holding company is interested in selling the business to an industrially oriented investor, as the firm is considered strategic. In addition, the government fears the possibility that the land on which the company is situated will be used for real estate investments, considering its attractive location.
Recently, the company has incurred losses, although these have dropped from 300 million Egyptian pounds ($77.2 million) to EP 160 million during the six-month period ending March 31, 2001.
The Alexandria-based TRENCO is considered the largest car tire manufacturer in the area, operating as one of the holding companies for Engineering Industries corporation. It manufactures tires and tubes for trucks, cars, light trucks, motorcycles and bicycles.
The company, established in 1956, generates about 10 percent of its revenues on the international markets. In Egypt it holds an eight percent market share. ― (MENA Report)
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