(MENAFN- Daily News Egypt) We import coal mainly from the US and Russia.
You have a contract with the Egyptian Refining Co (ERC) to supply your company with petroleum coke (pet coke), how much did your company save in energy cost after signing the contract?
We have saved 50% of logistics cost because we now get what we need only, so we do not need many stores like we used to do.
Has your company been affected by energy price hike?
Our business has been affected by about 11% due to high cost of electricity. For us, energy (fuel and electricity) accounts for 60% of the total production costs.
Do you have new products you plan to launch in the coming period?
We always release new products through using advanced technology, for example, we are supplying cement to some projects in New El-Alamein and New Capital where advanced constructions methods are applied.
Do you plan to expand your exports?
Our export production cost is high, including transportation and logistics. However, we export to Libya and Ghana very small quantities but our production cost is high, so it is difficult to compete with other international companies.
What is your company's total capacity of production?
Our total capacity of production is 12m tons and we sell only around 7m tons.
How do the current circumstances in the cement sector affect your business?
We have decreased our employees from 3,800 to only 1,500.
What are the updates regarding the Tourah land auction?
There was an auction and the winner did not pay the first installment of the value of the land so the auction was cancelled.
Then, we talked with the government to change the land activity from industrial to administrative but the government refused our request. It's incomprehensible that they refused it since that area is a perfect place for housing and support facilities like schools, supermarkets and other commercial activity. It could generate a lot of new jobs and improve the area.
Anyhow, we are currently preparing the master plan for the land to resubmit to the government to develop school, mall, administrative buildings, and residential units.
How will the interest rate cut decrease your expenses?
I think that 17% interest rate is too high to invest. It's supposed to be about 11-12% to encourage people to invest and expand. We have about EGP 1bn loans and the interests on our loans are estimated at approximately EGP 10m.
What is the fair price for cement?
Cement is the only commodity that has now the same price (excluding taxes) as in 2015. All input costs have more than doubled and similar products like have doubled. The current price of cement is unsustainable, price should at least cover our costs!
How do launching new cities increase your sales?
Launching new mega projects increased our sales by 30% as these new projects need good infrastructure, more roads, and more houses. We supply mainly the New Capital project.
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