The losses of the Tunisian Chemical Group (GCT) are expected to reach 160 million dinars during the 2019 financial year. Announcement made on Wednesday, November 6 by the Director General of GCT, Abderrazek Ouanassi.
These losses are generated by the expenditure of the subsidy of chemical fertilizers intended for the agricultural sector (117 MTD), supported by the Company, he explained, during a press conference in Tunis, specifying that the total cost of the subsidy of these fertilizers has reached 858 MTD since 2011, in addition to the payment of the wage bill of environmental, planting and gardening companies estimated at 75 MTD / year.
These expenses represent additional charges that have contributed to the worsening of the group’s financial situation, he said, calling for a special budget to be allocated to them under the budget law.
For Ouanassi, the decline in production to 30% of the annual average (6.5 million tonnes / year) has contributed to the worsening of the group’s financial situation.
In this regard, a new strategy aimed at reducing losses and orienting exports to neighboring markets (Turkey, Italy, France, Spain, Algeria and Libya) is adopted to reduce the cost of transport and improve profitability. The group has also decided to abandon the distant markets (India and Brazil) where competition is fierce in terms of setting export prices.
