National Cement to raise profits to LE 1B in case of using coal

CAIRO – 8 April 2018: The estimated profits of the National Cement Company will reach LE 1 billion ($56.45 million) in case it used coal in the operation system, in light of the rise of the ton's price to LE 1150, according to the company’s Secretary General of the Trade Union Committee Adel Youssef.

Youssef said that the board of directors specified the price of a ton’s production at LE 1,550 in the new budget on the non-fact, depending on clinker store without operating the furnaces.

He affirmed that in case the company operated with gas, it will gain LE 750 million annually.

Constructing a new factory will cost LE 4 million, so the company needs to develop its headquarter to avoid buying 1.5 million meters in Minya Governorate, Youssef said.
He clarified that the competition would be difficult in Upper Egypt as it has a lot of cement companies.

Chairman of the Holding Company for Chemical Industries, Emad el- Din Mustafa, said earlier that tender specifications of buying a coal mill for the National Cement Co. would get the company back on work track, referring that the mill costs $250 million, and asserting that depending on gas deepens the losses to more than $3 million year on year.

Mustafa clarified that focusing on studying all the problems that lead to the companies’ losses, in co-operation with the company’s leaders and members of the trade union committees, is the target for the upcoming period.

The company recorded a loss of LE 496 million during the first half of 2017/2018, compared to LE 209.5 million in H1 of fiscal year 2016/2017.

National Cement Co is a subsidiary of Chemical Industries Holding Company that is specialized in the manufacture and trade of cement and related construction materials.
The company manufactures cement, gypsum and clinker products, including ordinary portland cement, portland ferric cement, sulfur-resistance cement, white gypsum and cement bricks. The Company owns and operates four factories.