Inekon Group To Double Czech Export to Egypt

A contract in the amount of approximately 4.7 billion CZK was signed by Inekon representatives for the construction of a new cement plant near Al Arish (capital of Northern Sinai). It was a successful end to the company's participation in a tender announce by North Sinai Cement Company at the beginning of this year. The company promised to deposit by the end of this year an advance payment and to provide a letter of credit in order for the design preparation to start as soon as possible. The cement plant with a planned production capacity of 1.6 million tons of cement per year should be put in operation by 2011.

According to customs statistics, Czech Republic exported to Egypt goods and services for 3 billion CZK (162,417 million USD). The signed contract will influence the trade balance between the two countries significantly. "After 1989, export activities to Asia and Africa were substantially reduced. Thanks to many years of experience, our experts succeeded to renew necessary contacts. Once again after 50 year, we will build a Czech cement plant in Egypt. The first plant was built by Czech company Přerovské Strojírny around 1960 and the technology is now outdated. The importance of the contract is all the more important as it was co-signed by the Northern Sinai Region Governor as a witness,"told Josef Hušek, chairman of the board and director general of Inekon Group, a. s. and he also added: "In several years to come, six new cement plant will be built in Egypt. It is a governmental strategy that is intended to increase the offer of cement on the market and to fight its growing prices."

Project documentation for the new cement plant will be supplied by PSG International from Zlín. PSG will also provide author supervision during construction in Egypt. The plant will be built by selected local construction companies. Machinery (large furnaces and mills) will be produced in Přerov by PSP Engineering. Electronics and control systems will be supplied by Siemens Engineering. The design work is planned to be completed by October next year and first round of deliveries is expected at the beginning of 2010.

Inekon Group has also signed contracts for the construction of cement plants in Vietnam and Iraq. Their implementation was unfortunately delayed by unforeseen circumstances. "Financing in Vietnam is still not settled in connection with the financial crisis in the world that hit Asian markets, too. We are now considering an alternative solution because we have got only part of the necessary advance payment. In Iraq, the situation is worse. We are limited by extremely complicated political situation and security concerns in Kurdistan although we have passed a number of negotiations and got much promising support,“ explained Mr. Hušek.

Al Arish is the capital of Northern Sinai and has approximately 140 thousand inhabitants. It is situated on the Mediterranean Sea, some 40 km from Egypt's border with Israel and Palestine. The place is a favourite summer resort, especially by Czech tourists.