CAIRO: Forty-eight companies requested applications to apply for 14 new licenses for cement factories, the Industrial Development Authority (IDA) announced.
Minister of Trade and Industry Rachid Mohamed Rachid agreed to extend the deadline for submitting the necessary paperwork to Sept. 14 so that the interested companies could have time to submit their paperwork.
To date, only 27 of the 48 companies have submitted their complete paperwork, along with the letter of guarantee worth LE 30 million.
On Aug. 14, Rachid announced measures to increase the efficiency and competitiveness of the cement and steel sectors. “The ministry will seek to increase the number of local operators by issuing 14 new licenses for cement factories to start operating with an average capacity of 1.5 million tons per line, he said.
The IDA had originally received 54 requests for cement licenses prior to Rachid’s announcement, Amr Assal, IDA chairman said. However, after the strict rules put in place by the Ministry of Trade and Industry, 40 percent of those companies withdrew their requests.
“The standards the ministry is aiming for are high and it was expected that when the government regulates the requirements, many companies will not be able to compete, Ismail Saad, an investment analyst and cement sector expert at Prime Securities told Daily News Egypt.
The ministry extended the deadlines to give all companies a fair chance to get their paperwork in order and compete for the “all-important licenses.
“It won’t be easy for many [of the] companies to submit complete paperwork, especially the letter of guarantee, which is a crucial element, Saad said.
The applications will then be reviewed by a technical committee. If more than 14 companies make it past the filtering stage, they will participate in a public tender and the licenses will be granted to the highest offers.
“The tender process will not be an easy one, especially that many high-profile companies are interested in these licenses, Saad said.
Suez Cement, Assiut Cement, Al-Sewedy, Al-Amereya Cement and Cleopatra Cement are amongst the 27 companies that have submitted their complete paperwork.
