The Egyptian government plans to grant exceptional incentives to cement companies in celebration of October, as part of efforts to increase supply in the local market and stabilize prices.
Kamel El-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, announced that cement companies adhering to their production capacities and increasing output directed to the local market during October will receive discounts on fees related to modifying production capacity in their operating licenses.
The minister explained that this decision aligns with the government’s plan to regulate the construction materials market, encourage factories to expand production, and help reduce prices.
This announcement came during a meeting between the minister and cement manufacturers, where they reviewed current market conditions, pricing trends, and factory plans to restart idle production lines and expand capacity. The meeting also discussed a detailed report on cement price developments in recent months and production volume changes compared to previous periods.
El-Wazir pointed out that several companies have the technical and operational ability to produce quantities beyond their licensed capacity. The government is considering allowing these companies to officially expand their output limits to maximize production efficiency and increase supply in the local market.
The meeting also addressed challenges facing idle plants, such as shortages of spare parts and the need for renovation to enhance performance. The minister affirmed that the ministry closely monitors each factory’s restart plans to overcome any technical or administrative barriers and ensure a quick return to full operation.
Additionally, discussions focused on expanding the use of alternative energy sources to reduce production costs. The minister noted that the government supports the use of environmentally compliant fuels derived from agricultural and household waste, as part of sustainable solutions to enhance operational efficiency and cut costs.
Cement producers expressed great interest in investing in alternative fuels, emphasizing that it would help reduce operational expenses and strengthen the competitiveness of locally produced cement.
The minister concluded by instructing the concerned authorities — including the Industrial Development Authority, the Egyptian Organization for Standardization and Quality, and energy experts — to hold extensive technical discussions to develop practical mechanisms for providing alternative energy sources and ensuring sustainable industrial production.
