Egypt is planning to issue two new cement plant licenses before the end of the year with the aim of curbing rising prices domestically and enhancing the sector's ability to meet growing regional demand, press reports have said.

The plan coincides with expectations about a surge in construction projects in Egypt and other regional countries, the Saudi Asharq Business website said.

It quoted an unnamed official as saying that the two new licenses were agreed upon during a meeting of local cement companies a few days ago with Industry Minister Kamel El-Wazir.

“"The two permits are expected to be released before the end of the year, as each license will include its own production line,” the official said.

The move follows with a sharp increase in cement prices in the local market, according to the report, which said prices of cement delivered from the factory soared by 47 percent to EGP 4,057 per tonne this week compared with the same period last year.

The two new plants will add 1.5-2 million tonnes per year to Egypt’s cement production, an official said, adding that cement demand in the most populous Arab nation is projected to rise to 52 million tonnes by the end of 2025 from 47 million tonnes in 2024.

(Writing by N Saeed; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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