Cement producer Asec Cement launched operations at Asec Ready Mix, a LE 43 million which will have points of presence in Upper Egyptian cities of Minya, Assiut and Qena, according to a statement.
Asec Ready Mix is a joint-venture between Asec Cement, a portfolio company of private equity firm Citadel Asec Holding, and Misr Qena Cement; with an annual production capacity of more than 200,000 cubic meters of concrete.
“This project…will create some 100 new jobs in Upper Egypt while supplying high-quality ready mix concrete to a market in significant deficit, giving us an important first-mover advantage,” said Asec Cement CEO Giorgio Bodo.
While smaller construction operations typically mix concrete on-site from cement, sand, aggregates and water, ready mix concrete is created off-site and delivered in large quantities to construction venues.
Asec Cement owns 55 percent of the new venture, while Misr Qena Cement owns the balance.
“The market opportunity in Upper Egypt is substantial, not just because it has long been under-served, but also due to the rapid growth in both public and private spending on infrastructure, real estate and other concrete-intensive projects,” Bodo added.
Asec Ready Mix will also contribute to vertical integration at Asec Cement’s 1.7 million tons per annum greenfield cement plant in Minya, which is currently under construction.
Production at the Minya plant begins this month, while Qena will follow in early June. Operations will begin at the Assiut plant soon afterward. Each station can produce up to 110 cubic meters of ready mix per hour of operations.
