( E. JS. H. CO. )

BRIEF INFORMATION MEMORANDUM

PRODUCTION LINE

2`` - 8`` LONGITUDINALLY WELDED AND SPIRALLY

WELDED PIPES 6`` - 60``

1 EXECUTIVE SUMMARY

1.1 INTRODUCTION

Nasr Pipes was established in 1962 as a state-owned company with the construction of the 1/2`` - 4`` longitudinally welded steel pipes plants, the 6`` - 24`` spirally welded line for commercial pipes and a foundry . These facilities were located at the southern end of the existing site, but the spirally welded line has since been moved into the new factory area east of the main site.

Later on, other facilities were added:

- 1972 - Casting and large fittings foundry

- 1978 - New spirally welded pipe lines ( 6`` - 60`` )

- 1984 - Longitudinally welded pipe plant ( 2`` - 8`` )

Nasr Pipes, located in Helwan City (30 Km south of Cairo), is wholly owned by the Metallurgical Industries Holding Company (MICOR), a public sector Holding Company governed by law 203/1991.

This document focuses on Nasr Pipes 2`` - 8`` longitudinally welded, and, spirally welded steel pipes business only, as it is proposed for sale as a separate entity and will be called hereafter the “large & spiral” pipes business. Nasr Pipes’ 1/2 `` - 4`` Longitudinally welded steel pipes business is proposed for sale separately.

1.2 THE LARGE & SPIRAL PIPES BUSINESS: ITS

OPERATIONS AND FUTURE PROSPECTS

Nasr Pipes` large & spiral Pipes business consists of three main product types :

a- Large diameter (2`` - 8``) Longitudinally welded pipes. They are mainly used in oil & gas fields, underground water wells, the agricultural industry, green houses, and electrical poles. Large pipes serving the oil & gas industry are ISO certified, by API (American Petroleum Institute ).

b- Spirly welded pipes are used by water well drilling

companies to protect their wells, as well as in the

construction of electric poles.

c- Spirly welded pipes for the oil industry. These pipes are

ISO and API certified, and are rigorously tested:

ultrasonic, X-ray, and hydrostatic. They are mainly used as

pipelines in the oil & gas industry and in water and sewage

systems.

Nasr Pipes as a whole owns 462,801 sq. meters of land in Helwan. The Large & Spiral Pipes business comprises two separate plants, and a total area of 164, 454 sq. meters has been allocated to it. Of this area, 91,034 sq. meters consist of the production plants, and 73.420 sq. meters consist of the area for finished goods storage. The total built-up area of the large & Spiral Pipes business reaches 31,748 sq. meters (excluding roads and open spaces around each plant ).

Production capacities of each product line are depicted

in the following table

Large & Spiral Pipes Business Manufacturing Capacities

(In Tonnes)

The strategy for the Large & Spiral Pipes business should revolve around focused marketing on those segments where Nasr Pipes’ offering is attractive, and a planned export drive to regional countries

1.3 SUMMARY OF FINANCIALS

Large & Spiral Pipes Business Sales

(1993-1998, In LE* Thousands)

*Not: LE stands for Egyptian Pounds (US$1=LE3.4)

Large & Spiral Pipes Business Employee Breakdown

As Of 1/10/1998