Plans to upgrade textile industry, steel, and pharmaceutical

Public Enterprise Minister Mokhtar Khattab told the People's Assembly (PA) Economic Committee yesterday that the sale of 192 loss-making companies has brought the state LE16.7 million.

"Plans have been drawn up to develop the textile industry nationwide in order to raise its production to more than LE4 billion," Khattab said, adding that the plans would cost LE100 million to implement.

"By the end of June 2004, production will be expected to have reached LE3.2 billion," he said.

"Improvements in the industry to date have led to an increase in production of almost 11,000 tonnes, which is nearly 10 per cent of total production," he said.

"The ministry has conducted a full study on all machinery and has examined problems encountered in the improvement of quality and efficiency," he said.

"All funding for the textiles industry upgrade has come from banks and not the state treasury," Khattab stressed.

Concerning the steel industry, Khattab announced that production has increased from 1.1 to 1.4 million tonnes, and that no steel mills will be privatised in order to protect jobs, although mills are scheduled to be upgraded from the beginning of 2004.

"The government is paying much attention to the pharmaceuticals industry and top on the list of priorities is making reasonably priced medicines available to all," he said, adding that pharmaceuticals industries produce nearly 33 per cent of medications used in Egypt.

The minister went on to speak of the hospitality industry, saying that while prestigious establishments, such as the Palestine Hotel in Alexandria have been improved, no particular problems have been encountered in management, which is continually developing and changing.