Kamel El-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, confirmed that coordination is underway to restart the stalled cement production lines and increase the factories' production capacity.
This came during a meeting held by the Minister with cement manufacturers as part of the Ministry of Industry's ongoing monitoring of the cement sector's performance and efforts to enhance its efficiency to meet local market needs. The meeting also reviewed production developments at their factories and the recent decline in cement prices.
The meeting was attended by Hassan El Khatib, Minister of Investment and Foreign Trade; Ahmed El Wakil, Chairman of the Federation of Egyptian Chambers of Commerce; Dr. Nahed Youssef, Chairperson of the Industrial Development Authority; Dr. Mahmoud Mamtaz, Chairman of the Competition Protection and Anti-Monopoly Authority; and Ibrahim El Sejiny, Chairman of the Consumer Protection Agency.
At the beginning of the meeting, the Deputy Prime Minister for Industrial Development stressed that cement prices had witnessed a decline over the past month, but that further efforts were still needed from companies to ease 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. A factory wishing to increase the capacity permitted by its license must submit a request to the Industrial Development Authority to amend the production capacity, especially since increasing production would be the optimal solution to reduce selling prices to the end consumer.
The Minister highlighted the Ministry of Industry's commitment to supporting the continuity of the production process without disruption or supply shortages. This will contribute to maintaining market stability, ensuring the availability of products in appropriate quantities and at appropriate 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 consumer rights.
During the meeting, the status of the 8 out-of-service cement production lines was reviewed, including lines that require maintenance and rehabilitation. The companies pledged that these lines will soon enter the rehabilitation and efficiency-raising phase, 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 needs a landfill for By-Pass, as coordination is underway 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 quantity of cement available in the market, which will contribute to a significant decrease in prices. He directed coordination with the General Authority for Roads and Bridges to use the Bybus in road construction work.
The Minister 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 factory's reasonable profit and value-added tax, to determine a fair price for the end consumer.
He explained that the Cabinet would be contacted regarding approval of any factory wishing to use alternative fuel (from environmentally friendly agricultural and household waste) locally in cement production to reduce coal imports. He pointed out that cement factories must 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 should be consistent with market mechanisms.
