Egypt’s cement industry still growing

strong

The Egyptian cement industry has remained strong throughout the global financial
downturn. Whilst other countries in the MENA region are threatened by over
capacity, exports from Egypt have been banned since April 2009 and the ban will
continue until at least October 2010. Imports, meanwhile, are still going strong, with
some 1 million t imported in August alone.

Expansion projects

In the July issue of World Cement, the World Review shows a number of ongoing
expansion projects in the country, as the existing suppliers try to keep up with
demand. Titan’s Beni Suef plant is upgrading its line one and implementing a second
line with 1.5 million tpa capacity. Meanwhile the South Valley Cement Company has
also added a second production line at its Beni Suef plant. National Cement Company
has ordered a new mill for the El Nahda plant and the Government of Egypt Cement
Co. has placed orders for two 5000 tpd production lines.

New licenses

While existing producers do their best to cope with what has been described as a
‘housing boom’ in the country, and the additional capacity this necessitates, last
month the Egyptian Trade Minister announced that five or six new cement production
licenses would be granted. This shows continuing faith in the domestic industry, and
high hopes for the future. According to reports, cement demand has grown at 25 –
30% this year, far beyond the 10% growth that was anticipated.

Future prospects

The government announced a stimulus package of LE15 billion in FY08/09 to deal

with declining revenues from tourism and foreign investment. Recently, an additional
stimulus package of LE10 billion has been proposed, of which a reported LE9 billion
will be used for infrastructure development – more good news for the cement
industry.

Published on 05/11/2009

www.worldcement.com
Egypt (January 2011)
Country Data
Friday, 15 April 2011 06:41
Industry posts lower supply statistics, as demand drops. Prices also lower.
(CW GROUP) Egypt recorded lower production volume and lower demand for cement in January.
Monthly output and sales fell by around 4% and 6% each, while the year-on-year the drop was around
9%. Prices also slid by more than 3% in the first month of 2011.
Production slumped by 4.43% and 9.21% in MoM and YoY analysis in the first month of 2011, with a
low output of 3,793,200 tons, which failed to measure up to 3,968,900 tons produced in December 2010
or 4,178,200 tons achieved in January 2010.
Demand slid to 3,733,600 tons in Jan 2011, down 6.10% from 3,976,300 tons in Dec 2010. Year-on-
Year, the fall was 9.23% from 4,113,300 tons in January 2010.
Average prices also tumbled by 3.65% from 525.90 LE/ton in Dec 2010 to 506.70 LE/ton in Jan 2011,
which was also lower to 518.70 LE/ton in Jan 2010 by 2.31%.

Copyright CW Group. All rights reserved. Unauthorized distribution expressly prohibited.

Middle East cement firms report contrasting Q1 results

Financial
Thursday, 14 April 2011 16:37
Saudi Cement, Egypt's Misr Cement turn in differing results.
(CW GROUP) Saudi's second largest cement producer Saudi Cement Co. reported a first quarter profit
increase of 19 percent, while Egypt's Misr Cement Qena experienced an 11 percent drop in net profit
for the period.
In a report of Bloomberg, Saudi Cement's net income climbed to 210.8 million riyals ($56 million), or
1.38 riyals a share, from 176.6 million riyals, or 1.15 riyals, in the year-earlier period, the Dammam-
based company announced in a statement to the Saudi bourse website today.
Global Investment House estimated profit of 189 million riyals, while NCB Capital saw it at 185 million
riyals, according to data compiled by Bloomberg.
The increase in Saudi Cement's profit was attributed to production efficiency, drop in consumption
costs and hike in local demand.
Saudi Cement’s shares rose 0.9 percent to 53.75 riyals before the earnings were announced. The
stock has gained 7.9 percent this year, giving the company a market value of 8.2 billion riyals.
Misr Cement Qena, on the other hand, saw its net profit dropping to 103.7 million Egyptian pounds ($17
million) compared to 117.7 million pounds in the first quarter of 2010, Trade Arabia reported.
Misr Cement is among the first companies to report first quarter results that analysts are keenly
awaiting as an indication of how strongly companies were affected by the political turmoil that toppled
President Hosni Mubarak.

Copyright CW Group. All rights reserved. Unauthorized distribution expressly prohibited

Egypt cement demand picks up

Volume & Pricing
Friday, 08 April 2011 15:55

Prices rise following increased demand and political stability; prices strengthen.
(CW GROUP) According to Izz al-Din Abu Awad, chairman of the Central Association of Dealers of
cement, cement prices in the region rose, riding on a high seasonal demand and political stability, wrote
Ahram.
Prices hardened to 610 pounds in Cairo, while prices in the inner provinces ranged between 640
pounds to 800 pounds. According to the current projects, prices are set to increase further, following a
construction peak during the summer season.
Meanwhile production during the earlier period had fallen, largely due to control of the plants by foreign
nationals.

Copyright CW Group. All rights reserved. Unauthorized distribution expressly prohibited

Egypt: Cement imports decline

Volume & Pricing
Wednesday, 06 April 2011 16:01

Imports fall by 50% on account of recession.

(CW GROUP) Ahmed El Zeny Chief, Division of building materials, Cairo Chamber of Commerce
informed that Turkish cement imports dropped to 50% as a result of recession.
According to the statistics presented, the monthly import came down to 60,000 tons from a monthly
average of 100 to 150 thousand tons. Prices for cement also hardened from 510 to 525 per ton to 540
to 565 per ton, depending on the location.
Investment in many real estate projects have stalled due to lack of liquidity as banks also refrained from
loans to real estate projects, wrote Youm7.

Copyright CW Group. All rights reserved. Unauthorized distribution expressly prohibited.

Egypt: Cement imports reach 100,000 tons

Volume & Pricing
Monday, 25 October 2010 16:41

Domestic prices remain stable, while recession stalls projects.

(CW GROUP) Egypt imported 100,000 tons of cement last month, while cement prices in the country
remained stable, with average prices for cement imports ranging between 520 to 550 pounds.
Recession continued to stall real estate projects in the current fiscal, and many real estate companies
invested in as many as 70% projects in the previous fiscal as against the earlier plan of 30% due to
lower prices of construction materials leading to lower construction projects in the current fiscal.
While export of cement offers an alternative option, many manufacturers prefer domestic sale as
cement is sold for $90 per ton in Egyptian markets while in other countries it fetches $60 per ton.

Copyright CW Group. All rights reserved. Unauthorized distribution expressly prohibited

Egypt: Cement imports from Turkey drop

Volume & Pricing
Sunday, 10 April 2011 23:27
Cairo Builders Association says imports down 50% through the port of Damietta on sluggish

demand.
 
(CW GROUP) Egyptian cement imports from Turkey reportedly fell 50% to 60,000 tons as a result of
poor demand for the building product in the country, a report from Al Sharq said.
 
According to Ahmed El Zini, President of the Building Materials Association of Cairo, imports via the
port of Damietta fell, as the industry usually imports between 120,000 to 150,000 tons of product per
month, at a rate of LE 480 per ton. This would make the average consumer price settle at a range of LE
510 to LE 525 per ton.
Zini blames the lower cement volumes on the depressed construction market, where the government
has scaled back infrastructure projects and bank lending has contracted, the report said.

Copyright CW Group. All rights reserved. Unauthorized distribution expressly prohibited.

Egypt: Questions raised about sale of Helwan Cement

Mergers & Acquisitions
Tuesday, 29 March 2011 23:17

Critics file complaint regarding bids for the Egyptian cement maker.
 
(CW GROUP) Critics of the sale of Egypt's Helwan Cement have filed a complaint with the government
seeking clarification of the specifics of the deald.
 
Major General Hassan Abu El Dahab filed a complaint with the Attorney General No. 5510 supported by
documents, numbers, and data against Dr. Atef Ebeid, Dr. Mokhtar Khattab, and Hassan Mohamed
Kamel, Chairman of Helwan Cement.

He asked the government to investigate the sale of Helwan Cement Company, for $1.3 billion ASIC,
wherein it rejected all other offers from foreign companies such as Cimpor, the report said.

Copyright CW Group. All rights reserved. Unauthorized distribution expressly prohibited

Egypt's Suez Cement counts cost of

unrest
Mon Mar 21, 2011 8:40am GMT
CAIRO (Reuters) - Suez Cement, Egypt's biggest listed cement maker by market
value, said the political unrest that ousted Hosni Mubarak cost it and a subsidiary
80 million Egyptian pounds.

"The firm lost a total of nine days during the events of the months of January and
February 2011, while the company's estimated total losses were 30 million
pounds due to the interruptions," it said in a statement on Sunday.

Suez said its 99-percent owned Helwan Cement unit lost another 50 million
pounds after its plants stopped operations for 16 days.

The firm, a subsidiary of Italcementi, said it will pay a 3.90 pound per share cash
dividend after its 2010 net profits declined 4.9 percent to 1.2 billion pounds.

Suez has about 26 percent of Egypt's grey cement market and 42 percent of its
white cement market.

© Thomson Reuters 2011 All rights reserved

Egypt's Suez Cement declares 3.9 dividend

Reuters, Wednesday 16 Mar 2011

 Suez Cement, Egypt's largest listed cement maker by market value, declared a cash
dividend of 3.9 Egyptian pounds ($0.658) per share, the bourse said on Wednesday.
The cement firm, a subsidiary of Italcementi, posted a 4.9 percent decline in 2010
full-year net profit to 1.2 billion pounds.

Suez also approved a 4.30 pound cash dividend for its subsidiary Torah Cement,
whose 2010 net profit rose 29.6 percent.

In April 2010, Suez and Torah approved a cash dividend of 3.3 and 3 pounds per
share respectively.

Suez holds approximately 26 percent of Egypt's grey cement market and 42 percent of
its white cement market.

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