ASEC Cement announced today that it has launched operations at ASEC Ready Mix, which will have points of presence in the Upper Egyptian cities of Minya, Assiut and Qena.
ASEC Ready Mix is a joint-venture between ASEC Cement, a Portfolio Company of Citadel Capital’s ASEC Holding, and Misr Qena Cement. It has an annual capacity of more than 200,000m3 of concrete.
“This EGP43m project is an outstanding partnership with Misr Qena that will create some 100 new jobs in Upper Egypt while supplying high-quality ready mix concrete to a market in significant deficit, giving us an important first-mover advantage,” said ASEC Cement chairman and CEO Giorgio Bodo.
ASEC Cement owns 55% of the new venture, while Misr Qena Cement owns the balance.
“The market opportunity in Upper Egypt is substantial, not just because it has long been under-served, but also due to the rapid growth in both public and private spending on infrastructure, real-estate and other concrete-intensive projects,” Bodo added.
ASEC Ready Mix will also contribute to vertical integration at ASEC Cement’s under-construction 1.7Mta greenfield cement plant in Minya.
Production at the Minya plant begins this month, while Qena will follow in early June. Operations will begin at the Assiut plant soon afterward. Each station can produce up to 110 cubic meters of ready mix per hour of operations.
ASEC Cement owns a 27.55% stake in Misr Qena Cement.