A spokeswoman for Lafarge SA has confirmed that the French building materials company has temporarily suspended production in Egypt, amid rising political tension.
Lafarge produces 10 million tpa of cement. It has six cement production sites, six quarries, 62 ready-mixed plants and three gypsum production sites in the country.
The company confirmed its intentions to restart production in Egypt as soon as possible. “Work could restart as soon as the situation returns to normal, given that the staff remains operational and the management of the units will remain in place,” the spokesman said of the main cement plant.
There are concerns that the ongoing protests against the current Egyptian government could have serious repercussions for the country’s economic stability. Royal Bank of Scotland analyst John Messenger said: “The concern is that the long-term ramifications of the crisis will impact the operations and supply of the plants of companies in the region, such as Lafarge.”
Lafarge’s shares are down 1.5%, while shares in Italcementi and Titan cement have also dropped (by 3.5% and 2.2%, respectively). The European sector index is down 0.8%.
Read the article online at: https://www.worldcement.com/africa-middle-east/31012011/lafarge_suspends_production_in_egypt/