El Nahda Cement partially stops production line at Qena plant

Egypt's El Nahda Cement has decided to partially suspend the main line at its 5500tpd Qena plant for nearly six months. The actions come as a result of a decrease in sales and an increase in clinker stocks, representing stagnant assets if not exploited, according to local media sources.

The company plans to continue with a partial suspension and reliance on the available clinker, however would resort to complete suspension if the situation continues. Monthly updates of the situation for the purpose of making decisions either to restore work fully, or continue to stop, will take place.

Over the last few days, Chemical Industries Holding Co acquired 30 per cent of the company’s shares by buying the share of Al-Watania Cement – itself under liquidation – for EGP319m (US$19.2m), increasing its total stake to 50 per cent.

El Nahda Cement is reportedly in continuous communication with ASEC Cement Co, as it is responsible for managing and maintaining the plant during the partial stop period.