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Monday, 6 June 2016

Saturated market, regulations behind weak cement license turnout

A challenging regulatory environment and an already saturated market are the primary reasons behind the low turnout for new cement licenses, the head of the Cement Division at the Chamber of Building Materials Medhat Stefanos told Al Shorouk. The chief regulatory complaint: that cement manufacturers must arrange their own energy source, which is “beyond the capabilities of the private sector at the moment,” he added. While the market consumption is around 52-55 million tons per annum (MTPA), domestic manufacturers have a combined production capacity of 70 MTPA, said Lafarge Egypt Communications Director Samar Raouf. The Industrial Development Authority said only six companies have applied for eight of the 14 licenses out of the 35 companies that expressed interest, despite extending the deadline. Apart from the five we noted yesterday, Royal Al Minya Cement Co. also applied for a license, Al Mal reports.

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