Country Manager at Sinai Cement Company Tamer Magdy has called for immediate action by the Egyptian government to address the current local industry crisis, as the gap between the excessive supply and lagging demand widens, Invest-Gate reports.
The 40% gap between supply and demand is critical for resulting in significant financial losses for cement companies. Production costs are also high due to the increasing prices of fuel, electricity, and quarrying fees, which almost eliminate any export opportunities, given that some neighboring countries are exporting at much lower rates, Magdy pointed out in a recent press release.
Last May, Prime Minister Mostafa Madbouly had mandated the resolution of this crisis. However, these directives are so far inactive, the executive further stated, adding that Minister of Trade and Industry Nevine Gamea had given similar orders back in June, but no action has as yet been taken.
He elucidated that Madbouly had directed relevant authorities to coordinate with cement producers to put a limit to factories’ production capacity for a six-month period. The measures also included a regular assessment of market conditions, in addition to the provision of a funding program to support cement exporting and debt financing.
Last June, Sinai Cement had exhibited net losses of EGP 105.44 mn in the first quarter of 2020, compared to EGP 78.16 mn in the corresponding period last year, according to the state-run company’s latest financial statements.