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Posted: 8/12/2024 9:21:06 PM EDT
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Maadi Factory 54 closed Betrayal or foolishness? Sisi closes factory 54 after 70 years of production and pumps $3 billion into the iconic tower - Jan. 24, 2024 - Inreports As part of the accelerating economic ruin in Egypt at the time of the coup of the foolish Sisi, the Egyptian Official Gazette, issued this week, published a government decision to close and liquidate the 45 military factory, which was dedicated to the production of Egyptian weapons, and then went to produce devices and metals for the Egyptian markets. The latest issue of the Official Gazette, issued in January 2024, published a decision to liquidate the Maadi Company for Engineering Industries, known as "Factory 54 Al-Harbi" affiliated with the Ministry of Military Production. This came about 4 years after the company's general assembly took its decision to liquidate the factory permanently, in March 2020. Established by Mohamed Naguib and ruined by Sisi The story of the Egyptian military production in the factory dates back to 1954, when the first president of the Republic of Egypt Arabic Mohamed Naguib opened the 54 Military Factory, in the Maadi area, south of Cairo, and specialized in the manufacture of pistols, rifles, machine guns and light weapons, and the Egyptian version of the AK-47 automatic rifle or what is known as the "modified Kalashnikov". The factory remained on the map of production and development despite its losses, so that two years before its liquidation, the factory's management signed a memorandum of understanding with the Korean company "Med Tech" to establish a manufacturing line for medical devices. However, this did not spare the factory from liquidation and closure, after losing its capital, as a result of administrative errors, revealed in a report by the Central Auditing Organization in 2015, and work continued until it stopped completely in 2019, before announcing its official liquidation in January. Factory 54 is among 16 companies affiliated with the National Authority for Military Production, and is subject to Law No. 97 of 1983 on public sector bodies and companies, and is affiliated with the Ministry of Military Production. Products of 54 Military Factory Since its establishment in the fifties, the factory has specialized in the production of small and medium-sized weapons such as "drums, machine guns, rifles". The most famous examples are the 7.62×39 automatic rifle, which is a semi-automatic and automatic rifle, and the Maadi 40mm automatic rifle, which is used by Egyptian army soldiers in battles. Civil Industries But after the sixties, the factory turned to civil industries, opening lines for the production of household knives, office furniture, supplying sports, fitness and physiotherapy equipment, and designing and implementing low-voltage electrical networks and turning. The factory also owns a sector specialized in the manufacture of molds for forging workshops and presses and the manufacture of hand tools such as "hammers, tails, spikes, files, manual scissors, scalpels" as well as some external tools for turning workshops "INDEX", and some surface and thermal treatments for some metals, such as copper, chrome, cadmium, zinc and lead plating. The number of workers in the factory in the eighties of the last century about more than 8 thousand workers with an average salary of 35 pounds per month, before the number shrank to less than 4 thousand, before the January 2011 revolution, and the average salaries increased to about 1000 pounds, according to workers' estimates. Liquidation and bankruptcy In 1993, the Council of Ministers decided that the government should bear the burden of military production for the factories of the National Authority for Military Production, as they were not operating at full production capacity, and "54 Al-Harbi" was among those factories that now receive government subsidies and funding from the Ministry of Finance, in exchange for their work in the manufacture of guns and others, according to a report issued by the Central Auditing Organization. "Military production burdens" means all expenses spent by companies or factories on weapons production lines or design. Al , Sisi Finance In 2014, the Ministry of Finance refused to bear part of these burdens, and to reduce the funding provided to military production factories, which is the part related to "war depreciation" or production losses, and as a result of deducting the value of the losses from government imports of companies over the period between 1994 and 2010, part of the capital of those companies, led by Factory 54, was eroded. After a settlement between the Ministries of Finance and Military Production, the government deducted EGP 1.14 billion from its financial support for military production companies, and according to the report of the Central Auditing Organization, the percentage of losses of Maadi Factory 54 Company after that settlement amounted to about 104% of the value of its capital, meaning that it lost the entire value of capital. Despite the company's continuous losses and the erosion of its capital, the Egyptian government purchased EGP 251 mn worth of modern equipment and machinery for the factory to develop the production process, but these equipment did not work until the financial and technical warranty period for most of these machines expired. The Central Auditing Organization says: "The decision to bear the burdens of military production by the government had an impact on increasing the idle capacities in those factories and companies, and these burdens since the implementation of the decision until 2011 amounted to about 3.6 billion pounds." Since then, all military production companies without exception have been listing the value of the burdens of their activities, whether civilian or military, on the Ministry of Finance, until these burdens increased to about 4.7 billion pounds during the period between 1994 and 2015. The last budget of the plant at the end of June 2019 revealed losses during that fiscal year of EGP 6.7 mn as a result of the cost of production expenses exceeding the volume of revenues collected "sales". Production expenses amounted to EGP 551.4 mn, sales amounted to EGP 543.4 mn, grants and subsidies received by the company amounted to EGP 65.5 mn, and administrative and general expenses amounted to EGP 31.9 mn. One year before the decision to liquidate it, the value of the company's paid-up capital reached 5 million with no legal or statutory reserves or capital for the factory due to the loss of almost all of its capital, according to the final account of economic and service bodies published on the website of the Ministry of Finance. The plant's net losses at the end of June 2019 amounted to EGP 44.3 mn, while the value of long-term loans obtained by the factory amounted to about EGP 324.6 mn, distributed between EGP 219.4 mn from the government-owned National Investment Bank and EGP 105.2 mn from the National Authority for Military Production. The net value of funds owed by the plant to suppliers amounted to EGP 129.4 mn, EGP 75.8 mn to sister companies, EGP 845.1k to repayable expenses, EGP 333.8 mn to factory accounts payable, suppliers and other accounts payable to EGP 540.9 mn, and short-term loans worth EGP 7.4 mn. The volume of fixed assets amounted to EGP 36.5 mn, divided into EGP 23.4 mn machinery and equipment, about EGP 1.7 mn in building and construction land, EGP 4.2 mn in transportation and transportation, and EGP 7.3 mn in tools, furniture and office equipment. Despite the great losses suffered by the factory due to the policies of corruption and failed management by the Sisi regime, it was possible to float the factory to operate at full capacity and diversify its production and export to neighboring countries, because of the international confidence it enjoys, but Sisi prefers towers and the establishment of tourist resorts that pump billions of dollars, preferring manufacturing and production, in a scheme of unparalleled national treason, which will unfold one day. It is not logical for Sisi to pump $3 billion into the construction of the iconic tower and inflict about 500 million pounds on a factory that produces weapons, manufacturing tools, office and household tools, and equipment for operating workshops and factories, after 70 years of production, which he did with many major production companies, iron and steel factories, coke, fertilizers, medicines, shipping, ships and others. |
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