The Suez Cement Company’s board has decided that it will take a 30% salary cut, due to the negative economic repercussions of the coronavirus (COVID-19) pandemic.
In a statement on Tuesday, the company added that salary reductions will take effect from the second quarter (Q2) of 2020. The decision will also affect the company’s senior management who will see a 20% salary reduction from the same quarter.
The company said the decrease in salaries comes as part of to efforts to reduce costs given the ongoing circumstances. It also confirmed its commitment to further reducing costs to secure the company’s future, whilst at the same time confirming its solidarity with its parent company, Heidelberg Cement.
“The coronavirus pandemic crisis has caused the cement market to become more complicated, as demand was affected and costs rose, which affected the main partner, Heidelberg Cement, as it was forced to completely close its branches in many countries while continuing to subject other branches to severe challenges,” the statement said.
The company noted that Egypt’s cement industry has been experiencing challenging times over the past few years caused by the increase in cement supplies. There has also been a continued decline in demand for the material, in turn negatively impacting the Suez Cement Group which reported negative financial results.
The company has recorded a net loss of EGP 1.18bn for the full year 2019, whilst also reporting losses of EGP 1.34bn in 2018.