Arab Republic of Egypt Ministry of Investment and Foreign Trade General Organization for Export and Import Control

Within the framework of Ministry of Industry's continuous monitoring of the cement sector's performance and enhancing its efficiency to meet the needs of the local market, Lieutenant General Engineer Kamel El-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, held an expanded meeting with cement manufacturers to review production developments in their factories and the level of decline in cement prices during the past period. The meeting was attended by Engineer Hassan El-Khatib, Minister of Investment and Foreign Trade, Engineer Essam El-Naggar, Chairman of the General Organization for Export and Import Control, Mr. Ahmed El-Wakil, Chairman of the Federation of Chambers of Commerce, Dr. Nahed Youssef, Chairman of the Industrial Development Authority, Dr. Mahmoud Mumtaz, Chairman of the Competition Protection and Anti-Monopoly Authority, and Mr. Ibrahim El-Sagini, Chairman of the Consumer Protection Agency.

At the beginning, the Minister confirmed that cement prices had witnessed a decline during the last month, but that further efforts were still required by companies to alleviate the burden on local consumers by achieving an appropriate return that takes into account the cost of cement production. He emphasized the need for cement factories to increase current production capacities to reach the maximum capacity of the production line, and the factory that wants to increase the capacity permitted by its license must submit a request to the Industrial Development Authority to adjust the production capacity, especially since increasing production would be the optimal solution to reduce selling prices to the final consumer.

The Minister highlighted the Ministry of Industry's commitment to supporting the continuity of the production process without disruption or shortage in supply in away that contributes to maintaining the market stability, ensuring the availability of products in appropriate quantities and at convenient prices, achieving balance in the local cement market as one of the most important strategic commodities, ensuring the stability of supply chains and production by operating all suspended production lines, and protecting consumers' rights.

During the meeting, the status of the (8) cement production lines, that were out-of-service, was reviewed, including lines that require  maintenance and rehabilitation. The companies pledged that these lines will soon enter a phase of  rehabilitation and efficiency-raising, and are expected to start production at varying intervals during the coming period, to reach the actual production capacity of these lines. It was also revealed that one of the factories entailed a landfill for the By-Pass; whereas coordination is being conducted between Beni Suef Governorate and the Environmental Affairs Agency to provide a landfill to speed up the operation of the line.

The minister emphasized that the operation of these lines will contribute to increasing the supply of cement on the market, which in return will contribute to a significant decline in prices. He directed coordination with the General Authority for Roads and Bridges to use the by-pass in road construction work.

The Minister also directed the Industrial Development Authority and the Consumer Protection Agency to prepare a detailed report on the cost of producing a ton of cement and its pricing mechanisms, taking into account the reasonable profit for the factory and the value-added tax, to determine a fair price for the final consumer.

The Minister explained that the Cabinet will be communicated regarding approval of the request of any factory wishing to use alternative local  fuel (from agricultural and household waste compatible with the environment) in cement production to reduce coal imports, referring to the necessity for cement factories to write the final selling price on the cement package one month before it is put on the market, taking into account that the expected price written on the package is proportional to market mechanisms.