Cemex announced today that it expects to invest approximately US$100m (approximately EGP700m) to significantly improve its operations in Egypt and continue supporting the country’s housing, commercial and infrastructure development.
Yehia Hamed (left), Egyptian Minister of Investment
and Sergio Menendez, President of Cemex Egypt
The planned investments were discussed in a meeting between Sergio Menendez, President of Cemex in Egypt, and Yehia Hamed, Egyptian Minister of Investment.
“This investment is expected to support the sustainable development of Egypt for many generations,” said Menendez.
A sizable percentage of the investment will be used by the company to increase its capacity to use coal and petcoke as energy sources in its Assiut cement plant, helping to eliminate fuel subsidies by 2014.
Cemex also expects to install new waste co-processing and environmental equipment in the plant to continue reducing its emissions and to increase its alternative fuels usage. Since 2000, Cemex has co-processed over 250,000t of waste in Egypt, converting it into alternative fuels. In 2010, Cemex inaugurated a new US$12m dust filter to reduce emissions in its Assiut cement plant.
Cemex also expects to invest in equipment to build and promote the construction of concrete roads, which represent a more durable and cost-effective building solution. The company is already planning to support four major concrete paving projects in Egypt during 2013. In addition, the operational improvements are expected to further enhance the company’s affordable housing efforts, specifically in Upper Egypt, fostering the creation of new jobs in this region.
Among the key points highlighted by the Minister during the conversation, was his commitment to protect foreign investment in Egypt. Accordingly, he has proposed two amendments to the country’s laws regulating investment which will guarantee the rights of the State and the rights of investors in regards to factories or companies owned in the country. The amendments have recently been approved by the cabinet and are awaiting approval from the Shoura Council.
