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Arabian Cement invests in cost-saving efforts

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World Cement,

Arabian Cement Co., an Egypt-based cement producer, is to invest in three new projects this year, according to local news reports.

The company will spend EGP130 million (US$7.2 million) on projects to reduce costs and increase production efficiency, CEO Sergio Alcantarilla said in a recent interview. The projects will allow the company to continue to provide products at relatively low prices in the face of high inflation.

Inflation has been running around 30% this year, following the flotation of the Egyptian pound.

“We know very well how the inflation affects the purchasing power, and we try to control our production costs and provide the product at relatively low prices,” Alcantarilla said.

The Arabian Cement executive added that current cement prices in Egypt were still much lower than neighbouring markets, opening up an opportunity for export, if bureaucratic hurdles could be overcome.

The new projects include the construction of a mechanical crane to feed the kiln on the first production line, replacing a pneumatic conveying system, as well as the installation of a new coal mill.

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