Egypt’s cement crisis and military dominance

Source: Egyptian Institute for Studies

Author(s): Ahmed Zikrallah

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The cement industry in Egypt seems to have been experiencing difficult times that are expected to continue for at least several years to come, as a result of the current situation in the cement market, represented in low demand, which leads to decreasing profitability and increasing rates of the idle production capacity.
According to a study by CI Capital, an investment bank, the total increase in demand in the current and next years is equivalent to only 72% of the production capacity to be added through one factory owned by the armed forces, which is due to open next month. However, the government is still maintaining plans to add more cement factories. This would increase the surplus production capacity over the next five years, and put pressure on the revenues of cement producing companies if no proper solutions, such as activation of cement export, were provided…

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