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Premiere manages EGP 3bn fund to establish cement plant in Ain Sokhna Funding includes plant with capacity of 1.5m tonnes annually and development of existing lines, says managing director
Ahmed Abdelmoghny, managing director of Premiere Financial Consultants, said that his company seeks to provide funds worth EGP 3bn annually to one of the companies working in the cement field, without disclosing its name. He explained that the cement company plans to establish a cement factory on Ain Sokhna desert road with a production capacity of 1.5m tonnes of clinker annually, which is the raw material used to produce cement. Moreover, development works will be carried out on the existing lines in the company's industrial facilities. He explained that the implementation period of the project is 24 months following the establishment date, noting that a promotional tour of the cement company will take place in the Gulf in order to attract capital interested in the Egyptian market. He emphasised that the cement sector is one of the sectors in Egypt that foreign capital is interested in owing to the increasing investment value of the sector with the government launching several national projects in the housing and infrastructure sectors. He pointed out that Premiere is providing financial consulting for a number of acquisition deals, and managing funds for a number of companies working in the local market. However, Abdelmoghny refused to disclose further details. He pointed out that the volume of financial consulting deals has reached EGP 1.2bn in the industrial and real estate sectors. Abdelmoghny explained that sealing the deal of funding the production lines, whether through direct shareholding or provision of credit financing, will maximise the portfolio of funds provided by Premiere. He went on to explain that all investment institutions know that the Egyptian market is facing difficult economic challenges, especially the provision of hard currency and the fluctuation of the exchange rate. However, some industries like cement, food, and retail, are characterised by a continuous demand on their production. This creates good investment incentives that encourage investors to undertake investments despite the challenges. The Industrial Development Authority (IDA) has launched 14 cement licences throughout 2016 to allow the establishment of grey cement factories in governorates, including Beni Suef, Minya, Qena, Sohag, Aswan, New Valley, Suez, Marsa Matrouh, and South Sinai, with a production capacity of 2m tonnes annually per project. Six companies made eight offers. The companies include El Sewedy Cement, Chinese Jushi, Royal Cement, and Misr Beni Suef Cement. Premiere works in the field of financial consulting, sealing acquisitions, and merger deals. It is affiliated to Premiere Investment Holding Company.
