The cement industry in Egypt is expected to come under heightened strain following a 60 per cent decline in cement demand for the first time in the sector's history, says Professor Mohamed Saleh of the Toulouse School of Economics.
During the 1H20 Arabian Cement Co reported losses of about EGP5.6m (US$0.3m), the Sinai Cement company recorded losses of EGP245.6m (US$15.6m), while Tourah Cement company suspended production altogether due to a financial crisis caused by the oversupply in the local market.
Proferssor Mohamed Saleh said that as many as 23 companies currently operating in Egypt produce about 85Mta of cement, while cement consumption is hovering around 58Mt.
Last week, CEO of Lafarge Egypt, Solomon Baumgartner Aviles, warned that he expected five or six companies to leave the sector by next year due to a large surplus in production, amounting to 33Mta.
