Last Update 10:42
Sunday, 25 July 2021

Egypt's Suez Cement counts cost of unrest

Suez Cement, the largest cement producer in Egypt, reports losses due to recent political unrest and announces its intention to pay dividends to share holders as trade unionists' demands for their profit shares go unanswered

Reuters and Yassin Gaber, Monday 21 Mar 2011
Suez Cement
Share/Bookmark
Share/Bookmark

Suez Cement, Egypt's biggest listed cement maker by market value, said the political unrest that ousted Hosni Mubarak cost it and a subsidiary LE80 million Egyptian.

"The firm lost a total of nine days during the events of the months of January and February 2011, while the company's estimated total losses were LE30 million due to the interruptions," it said in a statement on Sunday.

Suez said its 99-per cent owned Helwan Cement unit lost another LE50 million after its plants stopped operations for 16 days.

The firm, a subsidiary of Italcementi, said it will pay a LE3.90 per share cash dividend after its 2010 net profits declined 4.9 per cent to LE1.2 billion.

Last Tuesday, 15 March, trade unionists from the Suez Group for Cement were attacked by thugs after trying to enter the company’s general assembly , which typically consists of the board of directors, the company’s trade union and government representatives.

The company’s general assembly meets annually to discuss, among other things, financial reports and company earnings. By law, workers are allotted 10 per cent of company revenues. On 15 March, when the board announced that it would not grant its workers their profit shares, the trade unionists began protesting the decision, but were denied entry into the hall.

After resuming their sit-in demonstration, the trade unionist delegation met with Minister of Manpower and Immigration Ahmed El-Borai, but as yet the labourers’ demands have not been met.

Suez has about 26 per cent of Egypt's grey cement market and 42 per cent of its white cement market.

Short link:

 

Latest

© 2010 Ahram Online.