ArabFinance: Oriental Weavers Carpets (ORWE) subsidiary, Oriental Weavers International, acquired 1.41% of the Egyptian Propylene and Polypropylene Company (EPP) for a total value of $7.8 million (EGP 122.78 million), according to the companys filing to the Egyptian Exchange on March 29th.

The company said that the transaction aims at diversifying its investment exposure and enhancing its vertical integration strategy.

EPP, located in Port Said, is Egypts and North Africas largest and only integrated Propylene and Polypropylene producer through propane dehydrogenation.

The companys capacity is 350,000 metric tonnes of polypropylene a year.

EPP exports 70-80% of its production, which helps in generating a steady stream of USD-denominated, tax-exempt cash flow thanks to its free-zone status.

Oriental Weavers recorded a consolidated net profit of EGP 1.11 billion in 2020, 30% lower when compared to EGP 855 million in 2019.

Founded in 1979 and listed on EGX in 1997, Oriental Weavers has emerged as a producer of machine-woven carpets and rugs for the residential, commercial, and hospitality industries. It also offers various lines of area rugs as well as manufactures woven goblins and tapestries.

* At the press time, the conversion rate is $1= EGP 15.74.

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