Egypt Solves Cement Crisis by Cutting 11% of Output

The Egyptian Competition Authority (ECA) approved a request by cement manufacturers to temporarily cut production by 10.69% to help reduce production surplus, according to Reuters.

The authority said that there will be additional discounts of 2.81% for each product line and further reductions depending on the age of the company.

The document said the quotas would come into effect on July 15 and remain for a complete year.

Cement production in Egypt has risen dramatically in the past three years after the state opened a plant in Beni Suef, with a capacity of 13 million tons per year, even as sales dropped by half due to the pandemic.

Alongside local manufactures, international companies including Mexico's CEMEX, Germany's HeidelbergCement, France's Vicat, Switzerland's LafargeHolcim, and Greece's Titan have invested heavily in Egypt's cement sector since 1990s.