Egypt: The Egyptian government has reportedly proposed that cement companies cap production by at least 14%. Multiple sources quoted by Reuters reveal that a formula was discussed in April 2021 proposing that cement plants cut production by a base amount of 10.5%. An additional cut of 3.7% would then be made for each production line a plant has and another 0.65% for each year they have been in operation. However, it is unclear how the age of a plant or production line would be determined. The Ministry of Trade and Industry has not commented on the story.

The measures have been suggested in order to help the sector cope with falling consumption and production overcapacity. Cement sales fell by 5% year-on-year to 41.7Mt in 2020 from 43.8Mt in 2019. However, two of the cement executives quoted said that the proposed cuts seemed unfair on multinational companies like their own that had older plants.

 

China: Sinoma International Engineering has signed a deal worth US$300m to build a new integrated cement plant for Guangxi Jinxiang Cement. The contract includes two 6000t/day clinker production lines, from raw material crushing to packaging, and a 6Mt/yr aggregate line. The project is located in Dashan Village near Shilong Town, Xiangzhou County in Guangxi region. It is expected to be completed by mid-2022.

Kenya: The Competition Authority of Kenya has granted China-based Zou Fengqi and Oman-based Raysut Cement exemption from regulatory approval on a recent application in line with competition guidelines. The Business Daily newspaper has reported that the application stated that Zou Fengqi plans to acquire a 60% stake in Raysut Cement’s business in East Africa.

Raysut Cement operates grinding plants in Mogadishu, Somalia and Somaliland.

Pakistan: Lucky Cement and China-based China Sinoma Energy Conservation have signed a deal to upgrade the waste heat recovery (WHR) units on both production lines at the integrated Pezu cement plant. When the project is completed it will increase the output to 14MW from 10MW at present. No value for the order has been disclosed. Sinoma supplied the plant’s original WHR units in 2017.

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