Vicat has a market share of under three per cent in Egypt, but Tamer Magdy, CEO of Vicat Egypt, claims that the company will achieve profit early next year, while it aims to take its market share to five per cent.
Vicat acquired Sinai Cement, its Egyptian subsidiary near Al-Arish, in 2003. The Egyptian market has been challenging for Vicat and it stopped production in the 1Q18. The commissioning of new plants has caused considerable overcapacity of 30Mta in the country.
Mr Magdy will look to increase business activity for Vicat Egypt by selling cement for road paving contracts.
While he recognises that new increases of 15-25 per cent in electricity prices are expected to be announced by the government, the company will have a second production line operational in late 2019. Moreover, Vicat is investing a further EUR30m to develop new alternative energy for cement production, improve production efficiency and target cost optimisation.
"The company expects to witness a significant improvement in its performance, especially in light of the improvement of the security situation in Sinai, after the great efforts exerted by all state institutions to regain control of this precious spot from the land of Egypt," Mr Magdy added.
"There is a consensus and determination among the new board members of the company to complete the success achieved by the previous board, despite all the difficult circumstances, and to overcome all obstacles facing the company, and turn them into real opportunities in order to achieve profits for the shareholders who trust the capabilities of the company."
