Solomon Baumgartner Aviles CEO of Lafarge Egypt

Updated 10/20/2021 10:22:00 AM

Egypt's cement industry is one of the oldest industries in the country, with the first cement plant constructed around 1911. The cement industry is a main pillar of the highly labor-intensive construction materials industry, which accounts for a large share of the Egyptian economy estimated between 5.8%–8.8% annually, according to the IMF and Mordor Research. The local cement industry alone contributes nearly 1% of GDP and 10% of the gross national product of the Egyptian industry. There are a total of 18 companies operating in the sector, with capacity distributed as follows: state-owned capacity at 18.5 metric tons with 10 production lines and privately-owned capacity at 64 metric tons with 37 production lines. Multinational companies represent 57% of total production capacity, with total production capacity in 2020 standing at 82.5 million tons, according to data available on cement companies' websites and UNIDO. Cement consumption in the Egyptian market during 2019 stood at 48.7 million tons, and at 44.9 million tons during 2020, according to the Ministry of Trade and Industry. Due to the sharp decrease in demand, idle capacity stands at around 30 million tons.

Arab Finance sat down with Solomon Baumgartner Aviles, CEO of Lafarge Egypt, to discuss the market, the company's performance, the recent government decision to set production quotas to aid the struggling sector, as well as how Lafarge Egypt is innovating and joining the digital transformation movement to offset its carbon footprint and reduce gas emissions as it participates in various projects across the country.

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