Suez Cement Co invests EGP300m in coal-based power

Suez Cement Co invests EGP300m in coal-based power
05 May 2014

Egypt's Suez Cement Co announced plans on Sunday to invest EGP300m (US43m) to convert two of its four cement plants to use coal rather than natural gas.

The conversion process for each plant will cost around EGP150m, said Mohammed Shanan, the cement producer's business development director.

The work is expected to take 6-8 months. Suez Cement is awaiting final approval from the Ministry of Environment.

The step follows the company's plummeting production in 1Q14 as output fell and sales dropped 50 per cent as a result of fuel shortages which are affecting Egypt's cement producers. Following protests by the plants made to the government for cutting essential gas supplies, the Cabinet approved the use of coal for power generation last month, despite the concerns voiced by Laila Iskandar, the country's environment minister.

Published under Cement News