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Sunday, 20 September 2020

Egyptian Cement to inaugurate EGP 4.5 bn cement factory in Sohag amid supply glut

Egyptian Cement is planning to inaugurate a EGP 4.5 bn cement factory in Sohag next year, CEO Ahmed Abou Hashima tells Hapi Journal. Abou Hashima, who also owns and runs Egyptian Steel and Egyptian Media Group, had said earlier this year that the opening of the Sohag factory was postponed because of the covid-19 pandemic, but had not provided details at the time.

The announcement comes as a growing oversupply crisis in Egypt’s cement industry is threatening to push as many as six producers out of the country. The supply glut — which began in 2016 but was worsened when the state inaugurated a USD 1.1 bn cement factory in Beni Suef in 2018 — has already seen the National Cement Company permanently shutter, with others such as Tourah Cement, and El Nahda Cement temporarily suspending their operations. Enterprise took a deep dive into the cement industry earlier this year, when prospects for the sector already looked bleak.

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