Hatem Saleh, newly appointed minister of Industry and foreign trade, said in a press conference on Sunday that energy for new cement factories will no longer be subsidized by the government.
Now new factories will have to independently purchase energy through the Petroleum Ministry according to international rates. Furthermore, he confirmed that energy prices for existing cement plants would step by step be readjusted to be even with prices for new ones.
Alongside the decline in the euro and worldwide economic crisis, Saleh blamed primarily the intensification of labor strikes, mainly in the ports of Ain Sokhna and Damietta, for investors’ increased contract withdrawals with the government, and therefore decline in Egyptian exports. He expects total exports to be LE130 billion by the end of 2012, be LE30 billion below the target.
Source: Egypt Independant