Pakistani cement makers continue price war The battle continues to heat up between Pakistan's cement producers and the government's Monopoly Control Authority (MCA).

Back in February, the MCA issued notices to 16 cement manufacturers in the private sector to show cause as to why penal actions should not be taken against them. This action was taken after the companies refused an order to lower their prices to pre-October 1998 levels. Eventually, the MCA leveled a heavy fine on the producers as well as an accumulating daily penalty.

The latest development in the ongoing battle occurred when the nation's Economic Coordination Committee stepped in and agreed with cement makers that the reduced cement price was indeed unrealistically low. Finance Minister Ishaq Dar said that a more realistic retail price would soon be negotiated.

The cement makers claimed that the MCA decision was taken without any consideration of the multiple problems being faced by the cement sector, including overcapacity and high production costs due to high excise duties and fuel costs. They added that if the set price is enforced, it will lead to closed plants and lost jobs.

By late April, the government decided to import 5 million mt of cement to compel the domestic manufacturers to reduce prices.

Egypt sells state cement firm to Lafarge The Egyptian government approved the sale of a state-owned cement company to Lafarge for US$382 million, according to a report in the Gulf News Daily.

Under the terms of the agreement, Lafarge will inject an additional US$120 million into Beni Sueif Cement to upgrade the plant and double production to 2.8 million mtpy. The company employees 730 workers and ranks eighth for the production and sale of cement in Egypt.