Industrial Development issues 14 Cement Licenses

Industrial Development Authority finished the preparation of bid requirements, regarding the issuance of 14 cement production licenses, as they will be offered for free – without bidding- by the end of next June.

Major General Esmail Elnagdy –Chairman of the Authority- stated to Amwal Al Ghad that a lot of companies have presented official requests to the authority, in order to acquire licenses of establishing new cement factories, but the authority will not consider these requests until the official issuance of bud requirements.

Elnagdy said that number of companies that desire to acquire the license reached 25 companies, and 12 of them are already operating in the Egyptian market, and he mentioned that a number of Arab investors have shown also their desire to acquire the license, within the last three months.

The most important clauses in the new bid requirements, indicates an obligation to who will acquire the license of importing the source of power, in order to escape the producers’ frequent problem with the government, because of the prices.

A study – conducted by the authority- expected inefficiency in cement market during the next 5 years, due to the rising ratios of domestic consumption in Egypt.

Sources – informed with cement licenses issue- declared that there is a new suggestion indicates increasing the Sinai proportion of licenses to be 3 licenses – instead of 1 license – to cope with the prevailing direction after the 25th of January revolution, which calls for reconstructing and resettling Sinai.