CAIRO, July 6 (Reuters) - Egypt's competition authority has
approved a request by 23 cement makers to reduce production
temporarily to help reduce a glut in output, setting a baseline
cut at 10.69%, a document seen by Reuters shows.
The competition authority decision, dated July 5, said there
would be additional cuts of 2.81% for each production line and
further cuts depending on the company's age.
The quotas would come into force on July 15 and remain in
place for one year, the document said.
Egypt's cement production capacity has risen significantly
in the last three years after the inauguration of the 13 million
tonne-per-year plant owned by the military in Beni Suef, even as
local sales halved, cement executives say.
The sector is seen as an indicator of Egypt's openness to
foreign investment, which it has struggled to attract.
Companies, including Germany's HeidelbergCement,
France's Vicat, Switzerland's LafargeHolcim,
Greece's Titan Cement and Mexico's CEMEX
, invested heavily in Egypt after a privatisation
drive that began in the 1990s. Local players set up their own
Egypt-based executives had welcomed an earlier, draft
proposal for production quotas, but two had told Reuters that
they thought the formula appeared unfair to foreign companies.
(Writing by Aidan Lewis; editing by Barbara Lewis)