Alumil secures €13.7M loan for Egyptian subsidiary

The financing will be directed towards the construction and installation of a new aluminum extrusion line at the company’s plant in the Polaris Industrial Zone in Cairo. The investment is expected to significantly increase the Group’s production capacity and strengthen its presence across the broader region.

Alumil Misr’s plant occupies a strategic location near the Suez Canal, serving as a hub for production and exports to markets in Africa, the Middle East, and neighboring regions.

Alumil’s Chairman and CEO, Georgios Mylonas, described the investment as a key strategic step in enhancing the Group’s footprint in Egypt. He noted that the expansion of production capabilities will create a regional hub that boosts operational flexibility in line with European quality standards, while the partnership with the European Bank for Reconstruction and Development (EBRD) is a critical enabler of this plan.

At the same time, the company provided an update on the performance of its subsidiary in the United Arab Emirates, Alumil Middle East, which continues to operate normally despite geopolitical tensions in the wider Middle East region.

According to the company, the subsidiary’s supply chain remains fully operational, with sufficient raw material inventories sourced locally and uninterrupted production processes. No disruptions have been reported in delivery schedules or material availability.

Alumil Middle East primarily focuses on large-scale construction projects and has no presence in the retail market. Ongoing projects are progressing according to contractually defined timelines.

Regarding pricing dynamics, any potential increase in raw material costs due to geopolitical developments is expected to have a positive effect on profit margins, as the selling prices of final products are adjusted in line with input cost fluctuations.

For the upcoming six months, management does not anticipate significant changes in the subsidiary’s operations. While a potential escalation of hostilities in the region could marginally affect the projected 2026 sales volumes, the current backlog of projects and strong activity in the UAE construction sector lead management to expect that Alumil Middle East’s financial results for 2026 will be at least in line with the previous year.