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Tuesday, 18 June 2019

Heidelberg’s Tourah Cement suspends production, considers liquidation amid losses

Heidelberg Cement subsidiary Tourah Cement has suspended production and could resort to liquidation due to financial distress caused by oversupply in the market, Managing Director Jose Maria Magrina said last week in a message to employees seen by Reuters. The company said estimated consumption during the current year will end at about 50 mn tonnes at a time when competitors operating at full capacity were producing about 85 mn tonnes. “This extra capacity is more than the total consumption in one year of countries like Italy, Spain, Morocco or South Africa,” Magrina said. The company’s accumulated debt stands at EGP 800 mn.

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