South Valley Cement granted new plant license
Egypt”s South Valley Cement Company has won a license to set up a cement factory in the South Valley Governorate as the company has been technically qualified in the second auction for cement producers in Upper Egypt.
Amr Assal, chairman of the General Authority of Industrial Development, said the ad hoc committee for the bid rejected technical proposals from Misr Cement Company and Al Nahda for Industry.
He declined to comment on the license fees that South Valley would have to pay, noting that regulations of GAID puts industrial licenses fees at E£2 for any license in manufacturing.
On October 30 last year, GAID raised about E£2.7 billion by offering six licenses for cement plants at E£801 million in addition to E£336.5 million for expansions in two existing plants and E£930 million for granting licenses to five other plants that started production before introduction of the new license regulations.
Khayri Mekled, the managing director of South Valley Cement, expressed relief that GAID”s decision to grant the license to his company without competition, noting that the company would have suffered E£100 million if the authority had decided to offer the license through an auction.
Published under Cement News
