The state-owned Spinning and Weaving Holding Company and the National Investment Bank (NIB) issued orders forbidding the Misr-Iran Spinning and Weaving Company (MISWC) from offering its Menya al-Qamh factory for sale or rent.
The holding company and NIB, which together hold a majority stake in MISWC, reportedly accepted the resignation of MISWC chairman Muhammad Hassan.
"The factory has been closed since the beginning of October because workers have vandalized the place," said Hassan. "They even held some of the staff hostage at one point to protest against alleged salary delays."
Hassan suspects these acts were encouraged by "certain elements" associated with "banned political groups" since salaries were paid out only one day behind schedule. Hassan explained that the factory was currently paying out a total of LE5 million in monthly salaries to some 1300 employees, even though it was incurring losses and was at risk of going bankrupt.
"This is why we considered renting out the factory," he said, adding that two of the company’s four board members had voted for renting it, while a third had called for selling the facility altogether.
"Monthly sales have fallen from LE22 million to only LE4 million since the beginning of the global financial crisis late last year," said Hassan. "Now sales are virtually nil."
MISWC is a joint venture between the Egyptian and Iranian governments, of which the former owns 51 percent.
Translated from the Arabic Edition.
