Suez Cement: Coal Conversion will cost EGP200 million per Factory

Suez Cement (SUCE.CA), Egypt’s biggest listed cement maker by market value, said the investment cost to convert each factory to use coal will be range between EGP 150-200 million.

The company blamed, in a statement to the stock exchange, the shortage in natural gas and fuel oil supply for the 50% decline in cement production in the previous 3 years until 2014.

The company said that using coal will improve its production through decreasing the dependency on natural gas and fuel oil.

Using coal, the company noted, nearly equals the cost of using natural gas which will help the company maintain its economic efficiency, and prevent negative impact from the expected increase in natural gas and heavy fuel prices in general.