[Original] Egypt Suez Cement Equips Coal Power Generation Equipment to Deal with Energy Shortage

The Egyptian Pyramids and the Sphinx

   Suez Cement Equips Coal Power Plant

   According to local Egyptian media, Suez Cement plans to invest 600 million Egyptian pounds ( $84 million) next year to equip two cement plants south of Cairo with coal power generation equipment. This investment will increase Suez cement production, reduce production costs and better cope with Egypt's energy crisis.

   In November 2014, Suez Cement achieved a 40.5% year-on-year increase in third-quarter profit, thanks to the successful transition of increased energy costs from production to consumers. However, the energy shortage forced the company to reduce cement production by 40%, and the profit in the first three quarters decreased by 14.6%. The Egyptian government began to reduce gas supply to factories in January this year, and enterprises had to import clinker at high cost to ensure production and operation.

   The new government wants to expand cement production.

   It is reported that the new government wants to expand cement production in Egypt and is analyzing its economic feasibility. At a meeting on December 15, the government's economic group pointed out the urgent need to expand cement production and increase cement production capacity in the country to meet future cement demand. Participants suggested that the Government of Egypt should explore the possibility of building a new cement plant with the facilities required for the provision of energy by investors. The proposal is being considered by the government, according to Prime Minister Ibrahim Mehleb.