Egypt: Ain Sokhna plant a step nearer to reality

A cement company plans to establish a cement factory on the Ain Sokhna desert road with a 1.5Mta clinker production capacity. Ahmed Abdelmoghny, managing director of Premiere Financial Consultants, said that his company seeks to provide funds worth EGP3bn (US$337m) annually to an undisclosed cement company. Moreover, he said that the cement company will upgrade its existing lines.

The implementation period of the project is 24 months following the establishment date, with Mr Abdelmoghny noting that a promotional tour of the cement company will take place in the Gulf to attract capital interested in the Egyptian market. He added that the cement sector is one of the sectors that has gained interest from foreign capital due to the government's recently-announced housing and infrastructure projects.

The Industrial Development Authority (IDA) has launched 14 cement licences throughout 2016 to allow the establishment of grey cement factories in governorates such as Beni Suef, Minya, Qena, Sohag, Aswan, New Valley, Suez, Marsa Matrouh, and South Sinai, with a production capacity of 2Mta per project.

Six companies made eight offers. The companies include El Sewedy Cement, Chinese Jushi, Royal Cemen, and Misr Beni Suef Cement.