Italcementi: industry has hit bottom, Egypt uncertainties

Italcementi: industry has hit bottom, Egypt uncertainties
Published: 18 March 2011

According to leading Italian cement producer, Italcementi, the global cement industry has bottomed out and will see more growth in Asia and a recovery in some mature countries.

The company expects its own volumes to rise 0-5 per cent in 2011, after three years of declines due to a global economic and financial crisis.

"We went through very though market conditions in the last couple of years. We look to the future in a more positive way and we believe we are at the bottom of the cycle," Italcementi chief executive Carlo Pesenti said.

Italcementi said the main risks going forward were production cost rises and uncertainty over the situation in Egypt, where its Suez Cement unit is a leading player.

"Egypt is a question mark. We do not know what will be the outcome of this phase of political and social (change) and then there is a risk of further cost inflation," Pesenti said.

Italcementi reopened its five plants in Egypt, the group’s third-biggest market by revenues after France and Italy, in February after one week of suspension.

Extracted article from Reuters