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Monday, 9 September 2019

Egypt’s cement sector in oversupply crisis -Suez Cement CEO

Egypt’s cement sector in oversupply crisis -Suez Cement CEO: Egyptian cement companies are continuing to flood the market, producing twice as much as the current market demand, said Jose Maria Magrina, CEO of Suez Cement, the largest private supplier of cement and concrete in Egypt. Demand in the sector has fallen 5% each year since 2016 as supply has been rising, which has prompted El Nahda Cement and Tourah Portland Cement Company to both temporarily suspend operations and Suez Cement to lay off workers. There are another five or six companies at risk of bankruptcy, he said. Magrina also highlighted the difficulties multinationals and local companies face in competing against state-owned companies, which have been a major contributor to the problem of oversupply. The recent hikes in electricity prices have added to the financial pressures on cement companies, causing production costs to rise 11%, Magrina said. The government met earlier this summer to discuss proposals to resolve the problem after companies complained of oversupply and losses.

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