Remco for Touristic Villages Construction, the third-biggest publicly traded resorts company in Egypt, may build a $250 million cement plant and increase its capital by selling global depositary receipts.
“We’re currently studying two available licenses for the cement plant in South Sinai and Wadi El Gadeed,” Ayoub Adly Ayoub, Remco’s president, said in an interview. “There are also eight new ones that we will study. The plant would have a capacity of 1.5 million tons.”
Remco may also sell global depositary receipts through a capital increase, he said, without elaborating.
Egypt plans to award licenses for 12 cement factories with an annual capacity of 1.5 million tons each before the end of June, Trade and Industry Minister Rachid Mohamed Rachid said in February.
The country wants to increase cement output by 54 percent to 77 million tons by 2015, Amr Assal, the head of the country’s Industrial Development Authority, said in December. Cement production may increase to 60 million tons in 2011 from the current level of 50 million tons.
“We think there’s a good rate of return on cement,” Ayoub said.
