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Egypt court orders Assiut Cement be renationalised

Building materials producer to be returned to the state after 13 years of private ownership, according to reports

Ahram Online, Thursday 13 Sep 2012
Views: 3166
Views: 3166
An Egyptian court has ruled that Assiut Cement's privatisation contract be cancelled and the firm returned to state ownership.
The Primary Court in the Upper Egyptian city of Assiut made the decision on Thursday, reports Ahram's Arabic-language news website.
Assiut Cement has been 95.8 per cent owned by CEMEX, a global building materials firm, since its privatisation in 1999.
Workers at its factory have staged several strikes this year, demanding bonus payments, permanent contracts and improved conditions.
Thursday's court ruling says that CEMEX is responsible for covering all the financial obligations and dues it incurred from 1999 until this year.
CEMEX will have to make up for any losses the cement firm saw over the same period.
Assiut Cement has also been told to rehire workers it had dismissed while implementing a restructuring programme. A total of 2,545 labour contracts were terminated from a total of 3,777.
Three other Egyptian companies were ordered renationalised by a State Council decision last September.
But despite the rulings on Shebin El-Kom Textile Company, Tanta Company for Linen and Derivatives and the Steam Boilers Company, they have still not been returned to the Egyptian state.
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