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Egypt to initiate international bidding process

World Cement,

Amr Assal, Chairman of Egypt’s Industrial Development Authority (IDA) has just announced that the country aims to initiate an international bidding process to grant cement licences by the middle of this year. Egypt plans to offer eight licences with 1.5 million t of capacity. Assal indicated that 12 companies had formally expressed their interest in the licences, out of which seven were Egyptian and the rest were Chinese and Italian companies. As mentioned by Reuters, Egypt granted six greenfield cement licences in late 2007 in a bid to boost production after rising local prices forced the government to impose an export duty.

In 2009 cement consumption was said to have increased by 26%, by contrast with many other countries where the global economic downturn had badly impacted on the construction industry. Egypt’s current cement capacity is around 50 million t, and this is expected to increase to 60 million t by 2011 as local demand rapidly rises. Assal is predicting that growth levels this year will be 7 to 10% and that to meet domestic demand, the country’s capacity will have to increase to about 80 million t over the next five years.

The land for the cement plants will be located in remote areas to avoid pollution in residential regions. Such areas include Marsh Mattrouh and Upper Egypt where economic growth is to be created.

Insight into the licencing process can be found in the article from Egypt’s Arabian Cement Company in the February issue of World Cement, available for subscribers to download now.

Read the article online at:

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