What is KAHROMIKA’s involvement in the Egyptian energy industry?

KAHROMIKA has a rich history of 50 years and has established itself as a major energy contractor in Egypt and the MENA region for electrotechnical works. We have been extensively involved in various energy contracting projects, including electromechanical constructions for energy generation, transmission, and distribution, as well as projects in petrochemicals, oil and gas, and industrial and infrastructure sectors. This wide-ranging involvement has translated into tremendous success for us, with significant participation in the majority of energy contracting works in Egypt and the MENA region.

What are the company’s main contracts in Egypt at the moment?

Currently, we are working closely with the Egyptian Electricity Holding Company and its affiliate power generation companies, as well as the Egyptian Electricity Transmission Company. Over the past two to three years, we have participated in the construction of 52 power plants, including steam, gas, and oil-based plants, contributing to a total power generation capacity of more than 20 GW. Notably, we have collaborated with Doosan Heavy Industries & Construction on two supercritical power plants, Cairo West and Assiut, each with a capacity of around 650 MW, providing mechanical installation services for steam turbines, condensers, generators, and auxiliary works, along with electrical and instrumentation (E&I) works. Moreover, KAHROMIKA has constructed over 45% of the extra-high voltage (EHV) and high voltage (HV) transmission lines of 500/220/66 kV in Egypt, including 128 gas-insulated switchgear (GIS) and conventional substations with a rating of up to 500 kV, and laid more than 1,000 kilometers of 220/66 kV underground cables.

Have you been providing mechanical installation services to other plants?

Yes, indeed. We have recently completed the mechanical installation for two supercritical boilers at the South Helwan supercritical power plant in collaboration with AC BOILERS S.P.A. (formerly Ansaldo Caldaie). Additionally, we have executed the mechanical works for eight heat recovery steam generation units for the Al Shabab Power Project Phase II, also in association with AC BOILERS S.P.A. Despite the challenges posed by the Covid-19 pandemic, we successfully completed the fast-track project for the triple bundle 500 kV double circuit overhead transmission line (OHTL) from Benban III to Toshka II for the Egyptian Electricity Transmission Company.

How has KAHROMIKA fared since the pandemic began?

In 2020, we experienced significant growth, with a 70% increase in revenue compared to 2019, amounting to EGP 800 million (USD 50.9 million). However, the pandemic did have an impact on infrastructure plans for new projects in 2021, leading to a decrease in expected revenue for this year. Nonetheless, we managed to fare well compared to many other companies during this challenging period. The competition in Egypt’s energy sector is fierce, especially in areas such as overhead transmission lines, power generation units, mechanical works, and E&I works.

How successful has the company been in recent overhead transmission line tenders?

In the past tenders issued by the Egyptian Electricity Transmission Company in 2020 and 2021, we have achieved a success rate of over 50% in tenders to which we were invited. We are currently engaged in the construction of overhead transmission lines for projects like Salwas and Girza, and actively participating in activities related to light rail transit. We are making substantial progress in these endeavors.

What are KAHROMIKA’s plans in the short term?

Our focus in the short term is on undertaking engineering, procurement, and construction (EPC) works for the Egyptian Electricity Transmission Company. Additionally, we are considering establishing our own production lines. Although we are still finalizing the details, our plan is to set up a production line for materials related to the electricity sector within the next 8 to 12 months.

What are your expansion plans in the MENA region?

The Covid-19 pandemic presented challenges in terms of mobility and specialized services, making it difficult to expand from one country to another. Nevertheless, we have recently entered Libya to initiate preparations for future work, and we already have offices in the country. Although progress has been slow, we believe it will be a promising opportunity for us. In the past, we have successfully operated in Algeria and the Gulf region. Currently, we have branches in Kuwait and Saudi Arabia, and we are actively working to strengthen our branch offices across the MENA region. Furthermore, we aim to expand our business in Africa. KAHROMIKA’s shareholding structure includes Arabia Investments Holding (AIH) with a 51% stake, Holding Company for Construction & Development with a 39% stake, and Elsewedy Electric Co. with a 10% stake.