Increasing investments depends on economic and political stability in Egypt to - Jose Maria

 

January 19, 2013

 

Jose Maria Magrina, CEO of Arabian Cement said that the company plans to list its shares on the Egyptian Exchange (EGX) as an alternative for finance instead of Egyptian banks, pointing out that the listing move depends on the political and economic stability. In an exclusive to Anbaa Asharq Al Awssat on the sidelines of a press conference held at the Company's office in Ain Sokhna, Magrina added there's a fear of injecting new liquidity in the stock market, confirming that the listing now would be unfair due to the current political and economic difficulties and the shares' prices also doesn't represent their real value. He added that the cement producer is awaiting economic stability to finalize the share offering as the best means of corporate financing.

 

He pointed out that the Company's total investments cost that were injected in the Egyptian market estimate $560 million, adding that the Company plans to invest $30 million this year in shifting 50% of the plant to operate using an alternative fuel which depends on agricultural waste, exhausts and coal and solid waste instead of natural gas to be completed at the mid of 2014. Jose pointed out that gas and energy prices threaten the future of the cement industry in Egypt, which is considered one of the labor-intensive strategic industries, adding that the Company addressed the concerned authorities; the ministry of Industry and Foreign Trade and the Commerce chambers since months to no avail.

 

He said that the Company won't increase its production capacity now because of the problems of energy and natural gas prices, pointing out that the Company acquires a market share ranges between 8 to 10%. He pointed out that the Company plans to open 3 new distribution branches in Delta, and other governorates with investments range between EGP 1 million to EGP 2 million for each branch. Arabian Cement Company (ACC) was first established in 1997. In 2004, the Spanish cement group Cementos La Union, acquired 60% of shares in ACC.

 

In 2007, ACC finished the first stage of its factory and by 2011, the company has continued its original projects and invested in an additional line and bringing ACC total cement production capacity to 5 MM tons per year. i.e. 10% of the total production of cement.