Orascom expands its bag interests

Orascom expands its bag interests
Published: 05 January 2006

Orascom Construction Industries has acquired Egypt Sack Company for E£43m (EUR6.3m).  Egypt Sack operates a single plant with an annual capacity of 60m cement bags and generated a turnover of E£38.6m ( EUR5.6m) and a net profit of E£6.7m (EUR1.0m) in 2004, with the net profit last year expected to emerge at around E£9.0m (EUR1.3m).  As a result of the purchase of Egypt Sack, Orascom Construction Industries now has an annual cement sack capacity of approximately 300m bags, spread across three plants, two in Egypt and one in Algeria. Cement is predominantly sold in 50kg bags both in the Egyptian and Algerian markets.  The increased bag capacity will enable the group’s North African plants to continue to rely on its own bag production, in spite of increasing bagged volumes being sold both into domestic and export markets.