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Increasing demand for cement relies on increasing government investment - Daily News Egypt

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Increasing demand for cement relies on increasing government investment

Domestic companies produce 70m tonnes, while expected demand stands at 55m tonnes

Amreyah Cement Company expects to finish its project to convert into using coal and alternative oil.

Commercial and Business Development Director at Amreyah Cement Mohamed El-Nokaly told Daily News Egypt the company has allocated new investments to implement the project of converting production lines to be fuelled by coal within this year, with a total cost of €60m (EGP 510m).

El-Nokaly said the company has already begun the project and obtained preliminary approvals for the environment for the use and import of coal. The company is seeking to increase the volume of production in 2016 at a rate ranging from 2% to 4%, compared to about 3.4m tonnes of production in 2015, bringing up the total production to 3.6m tonnes.

He predicted an improvement in demand on coal this year by 2% compared to last year. The government national and infrastructure projects will drive the demand to increase, despite the recession of the real estate market in Egypt.

Amreyah has completed the implementation and currently operates a project to use alternative fuel, after signing a protocol with the Alexandria Governorate with regards to waste. El-Nokaly said the company operates on agricultural waste.

Meanwhile the company is coordinating to shift to using household waste, in cooperation with the Nahdet Misr cleaning company, operating in Alexandria, which will sort waste and prepare them for usage at the factory in addition to preparing to launch a median company for processing waste.

El-Nokaly said the project’s inauguration next month will make Amreyah the first company to use waste as alternative fuel in Egypt. The Ministers of Environment and Local Development and the governor of Alexandria will be attending the inauguration ceremony.

The cost of the project to use alternative fuels stands at about EGP 100m. The implementation of the project began in late 2014. It will accommodate about 400 tonnes of waste per day, which is 30%–40% of the total household waste in Alexandria. The project will provide 15% of the factory’s fuel.

Moreover the company plans to introduce a new product for major national projects, power plants, and water tunnels. The product endures harsh conditions, such as high concentrations of salts or sulphates.

There has been a decline in real estate activity, which hinders demand on construction materials. He expects the demand to continue declining as the government bans construction on agricultural land. This will be offset by increasing services projects such as hospitals, schools, roads, and bridges.

He explained that production of cement companies is estimated at 70m tonnes, while the actual demand is less than 55m tonnes, which creates a large surplus may be directed for export especially to Yemen and Libya.

He noted that the company is trying to maintain its local market share before increasing exports.

Amreyah Cement Company is a member of the Brazilian InterCement Group. The company has three production lines for cement, two lines for ready-mixed concrete, and a factory for cement paper sacks. The group has 40 factories across Brazil, Portugal, Paraguay, South Africa, Mozambique, Egypt, Argentina, and Cape Verde.

Topics: cement coal

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