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Cimpor gains fuel flexibility in Egypt

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World Cement,

The start-up of a coal mill at Cimpor’s Egyptian operations helped the company realise increased EBITDA margin levels about 30% in 4Q16, the company, as the operation’s variable costs were reduced.

The coal mill allows the company to fire coal, petcoke and alternative fuels, switching from more-expensive natural gas and fuel oil. The company invested €46 million in the new mill – the company’s largest investment in 2016.

In addition to the new coal mill, the company also began waste co-processing activities at its Amreyah plant, in partnership with a Portuguese company that prepares waster and a waste-collection company in Alexandria.

“Following the inauguration of the coal mine and operationalisation of the co=processing of solid waste in the region of Alexandria, the company is now prepared to reduce its operating costs and increase its productivity,” Cimpor said in its 2016 annual report.

Egyption demand for cement is expected to grow by 3% - 5% in 2017. Cimpor sold 3.19 million t of clinker and cement in Egypt in 2016, a fall of 5.7% on the previous year’s total of 3.38 million t.

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