Misr Beni Suef Cement terminates contract with Asec

Asec breached its commitments regarding its production capacity

  
A general view of the new plant of El-Areesh Cement Co. in the Egyptian Southern governorate of Beni Suef, south of Cairo, Egypt January 31, 2018. Image used for illustrative purpose.

A general view of the new plant of El-Areesh Cement Co. in the Egyptian Southern governorate of Beni Suef, south of Cairo, Egypt January 31, 2018. Image used for illustrative purpose.

REUTERS/ Amina Ismail

ArabFinance: Misr Beni Suef Cement Company (MBSC) announced terminating its contract with Arab Swiss Engineering Company (Asec) to operate two cement production lines in its Beni Suef plant, according to the company’s recent statement to the Egyptian Exchange.

Asec breached its commitments regarding its production capacity and received a warning letter on January 19th to deliver the plant in a sound operating condition.

There are no penal conditions related to terminating the contract, and MBSC is in the process of filing a lawsuit against Asec for compensation and fines prescribed in the contract.

The listed company reported a 90% Year on Year leap in its net profit in the first nine months of 2020, recording EGP 127.27 million.

Established in 1997, MBSC operates within the materials sector focusing on construction materials.

MBSC is located in the center of Egypt, 190 km south of Cairo, it started production in 2003 with a plant of 1 cement production line, last 2006 year built 1 new cement production line.

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