Industry Latest News

South Valley Cement to consider cost of second production line

Egypt: South Valley Cement is considering the cost of building a second production line following an increase in the cost of equipment from foreign suppliers due to the devualtion of the Egyptian Pound.
The company’s management will meet in December 2016 to discuss the new 1.5Mt/yr line and how to pay for it, according to Daily News Egypt. The line will be built at the producer’s plant in Beni Suef’s industrial zone, increasing its overall production capacity to 3Mt/yr. It will take three years to build.
South Valley Cement won a cement license from the Industrial Development Authority in December 2016.

Last modified on 06 December 2016

Egyptian government sells three cement licenses for US$28m

Egypt: The Industrial Development Authority (IDA) has tendered three licenses to build new cement plants to El Sewedy Cement, South Valley Cement and Cement Egypt. The licenses were sold for a total of US$28m, according to the Daily News Egypt newspaper. IDA chairman Ahmed Abdel Razek said that the three cement plants built using the new licenses will have a total production capacity of 6Mt/yr.
The new capacity is intended to support local infrastructure projects including the construction of a proposed new capital city.

02 December 2016

Arabian Cement to spend US$5.7m on new coal mill

Egypt: The Arabian Cement Company plans to spend US$5.7m on a new coal mill for its Suez cement plant. The upgrade is intended to increase production capacity at the site, according to the Daily News Egypt newspaper. At present the plant is operating at 60% capacity by using one coal mill. It imports coal from Europe, China and South Africa through the Dekheila Port of Alexandria and Adabiya Port in Suez. The cement producer reported that its net profits fell by 36% year-on-year to US$8.97m in the first nine months of 2016 from US$14.1m in the same period in 2015. It blamed this on foreign exchange rates and a drop in sales due to technical problems at the plant.

21 November 2016

Algerian investors to buy ASEC Algeria for US$60m

Algeria: A group of Algerian investors have agreed a share purchase framework to buy 100% of ASEC Algeria from ASEC Cement and ASEC Cement Djelfa Offshoren for US$60m. ASEC Cement is an Egypt-based producer and supplier of cement and other construction materials. ASEC Cement Djelfa Offshoren is a subsidiary of ASEC Cement, a subsidiary of Qalaa Holdings.

31 October 2016

European Bank for Reconstruction and Development helps to reduce carbon emissions from the Egyptian cement industry

Egypt: The Egyptian cement industry could reduce its CO2 emissions by 2030 by following new recommendations in a report from the European Bank for Reconstruction and Development (EBRD). These recommendations have been published in the EBRD’s report, ‘Policy roadmap for a Low-Carbon Egyptian Cement Industry,’ which highlights the need for decisive and collaborative action by the industry’s stakeholders in order to achieve a reduction in CO2 emissions.

“Improving environmental standards in the cement industry and offering commercial incentives is realistic and vital for the profitability of the sector,” said Philip ter Woort, the EBRD Director for Egypt.

The roadmap outlines recommendations for policy actions from the Egyptian government that may provide effective incentives for the cement industry to improve its energy efficiency and to reduce CO2 emissions. The report points out that the potential for improvement is high despite that 50% of the Egyptian cement industry’s production capacity was built after 2000, and is using up-to-date equipment and clinker kilns that use best available technology (BAT).

Until 2014, the Egyptian cement industry, one of the most energy intensive industries in the country, had primarily used state-subsidised natural gas and heavy fuel oil to fire its cement kilns. However, following a gradual phasing out of the energy subsidies, Egyptian cement companies have switched to using high CO2 intensive fuels such as coal and petcoke.

The roadmap suggests that in order to reduce CO2 emissions, the industry should reduce the clinker content in cement, increase the use of alternative fuels, improve electrical energy efficiency and use more renewable sources of energy. Under one of the more ambitious scenarios, 2.2Mt/yr of coal will no longer have to be imported by 2030, saving about US$200m. Furthermore this would lead to a reduction in CO2 emissions to about 2% below the historic level prior to the fuel switch. In addition the cement industry could increase its usage of alternative fuels substitution.

The report was initiated by the EBRD, in cooperation with Egypt’s Ministry of Industry and Trade, the Egyptian Environmental Affairs Agency (EEAA), the Chamber of Building Materials Industries/Cement Industry Association (CBMI) and the Cement Sustainability Initiative (CSI) of the World Business Council for Sustainable Development (WBCSD).

31 October 2016

Royal Cement gains logistics base in Poland

Poland/Egypt: Royal Cement EU, the European arm of the Egyptian white cement producer Royal El Minya Cement, is planning to expand in the Gdansk-Kowale IV logistics center in Poland, belonging to 7R Logistic. Querco Property acted as Royal Cement's advisor in finding and negotiating the deal.

02 September 2016

Siemens to launch Sicement Electrification system in Egypt

Egypt: Siemens will launch its Sicement Electrification system at the Bringing Power to Cement Industry forum in Cairo. The product line is designed to provide electrical distribution and optimization systems for cement plants including high-voltage electrical substations required for the interconnection with the national grid. All components are coordinated with each other to reduce costs and CO2 emissions.

18 August 2016

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