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Thirty-four billion pounds, exports of construction materials
Date: 11/25/2012
Dr. Walid Jamal al-Din, Chairman of the Export Council of building materials, building materials exports will not exceed 34 billion pounds by the end of this year, less than the target of 8 billion pounds, which was planning to export access to 42 billion pounds at the end of 2012.
And in his dialogue for «almal», Access exports of construction materials to 42 billion pounds this year to a range of problems facing the building material export sector since the outbreak of the revolution of 25 April.

Gamal said that these problems of sit-ins and strikes in companies building materials as well as port workers strikes, which have caused great losses to exporters because their delay penalties resulting from failure to export the quantities ordered in a timely manner in accordance with export contracts with foreign importers, in addition to the heavy transport drivers ' strike has negatively affected the movement of raw materials and products from ports to factories and vice versa, pointing out that the cost of transport to 25% of the total production cost in construction material industry.

The continuing strikes in Egypt both factories, ports and transport will have a catastrophic impact on the national economy, and will result in the loss of export markets because of delay and disruption of export shipments.

And Government export Council called for rapid intervention mechanisms and urgent action to address the crisis of workers ' strikes and sit-ins, as well as firm orders, plus not rosy promises to employees without implementation, because it provokes and drives them to stubbornness and strikes.

And he hit an example that the social allowance announced by Dr. Mohamed morsi President earlier this year was one of the reasons for the strikes, workers of all private sector workers demanded factories the same allowance should be applied to them as the public sector, which didn't can him manufacturers in the private sector, as a result of the lack of liquidity and demand for their products, prompting workers to resort to strikes and sit-ins.

He noted that the continuing labor strikes disrupt production and exports adversely affected the credibility of the Egyptian exporting companies, which could cause the loss of and loss of foreign markets that are very strong effort over the years.

The total investment of the construction materials industry at least 200 billion pounds, expected to pump new investments in the local market in building materials for the time being, as a result of the instability that still dominates the domestic situation of labor strikes and tiered ratings slipped to Egypt.

With regard to talk about State institutions I betray him, he does not care whether bakhonh State, but what is important is the need for a strong Governor control things uncontrolled, has the efficiency and ability to find immediate solutions to the problems of the people, and then there will be no difference in nomenclature whether brother or secular or liberal.

Gamal El-Din criticised the Government of Dr. Hisham jellyfish because of blurred vision to guide the national economy as well as foreign policy, pointing out that investors and importers are developing their plans and their objectives according to these factors.

The Government's concern and rejected some political forces at the moment and trying diligently to finalize the Constitution, at a time when people of many problems, particularly the problem of wage and price increases, pointing to the simple working does not need a Constitution as needed to the living, he said — prompted the Government to fast-track procedures and real to provide a decent life for Egyptian citizens.

He noted that the Egyptian exporting companies have become «joke» in foreign markets as a result of non-compliance with timely deliveries.

He stressed the need to expand African market penetration during the next phase to be alternative markets for European and American markets experiencing crises from time to time.

He noted the importance of external exhibitions and promotional missions in foreign markets as one of the important means to promote Egyptian exports, rejecting the idea of a permanent galleries for Egyptian exports in foreign markets, because the costs are high, and the impact and results in the conclusion of contracts less than the regular exhibition, held for a week or three days, he said.

He said the most important markets of Egypt's exports of building materials, especially Libya, Saudi Arabia, pointing out that it is necessary to provide all the solutions to the problems facing Egyptian exports to enter the African market, particularly the problems of transport and financial transactions.

With regard to energy prices, said Chairman of the Export Council of building materials, companies and factories did not reach any solutions to the Government decision to pay the increase in energy prices retroactively for a period of 6 months, explaining that the Government insist on requiring manufacturers to pay dues, and that gas supply will be disconnected for non-payment.

He said companies would sue the Ministry of petroleum and natural gas holding company, because the retroactive increase collection causes significant losses to the plant and companies, noting that the energy component of the most important elements of the final costing of goods and products, and the companies sell their production according to old price, thus requiring factories to pay retroactively displays factories for losses, because they will not be able to refund the price difference from customers both local and foreign.

He explained that local factories suffered many problems on electricity and gas, pointing out that the industrial zone in Badr city are large fluctuations in the power supply for a long time, while MEW is not responding to this problem.

He said investors in the industrial area in Badr city filed complaints, many MEW Sudan deal with the problem of fluctuating power to solve this problem, it advised the Ministry of electricity purchase devices oscillators, decrying this advice to the Ministry of electricity got millions of pounds from factories as fees for quotations electricity before operation.

Gamal said that despite the lack of difficulty increase the value of sales taxes on some construction materials industries to 11%, instead of 8% iron, 5% for cement, but the problem that makes this not logically through the present depressed state of the local market, pointing out that the tax imposed in the case of currency to enable factories to pay it and not if falling sales and declining demand.

Gamal said that the building materials industry suffered many problems, including the reluctance of banks to grant credit and funding for factories and companies in recession dominating local markets, pointing out that banks may be right in this, but banks should exercise its role in financing industrial and export sectors also in parallel with financing of the Treasury bills offered by the Government.

Banks demanded payment should be extended to plants to over 5 years in order to enable it to pay instead of tripping and closing the plant, particularly the factories suffered greatly from the lack of liquidity as a result of the decline in domestic or export sales.

And to provide the necessary raw materials for local building materials industry, said Gamal El-Din said the Government is working to provide the needs of plants by preventing export of certain scarce raw materials or a fee.

And the example that the Government impose a fee of £ 150 on exports of marble for scaling the export and domestic market, pointing out that access to raw materials and value added manufacturing and provide employment opportunities, rather than export them as raw materials.

The Export Council in a note last week to the Minister of industry and foreign trade in order to extend the draw issued on exports of marble for a year in order to provide for domestic industry, and after numerous appeals by local marble plants, pointing out that the Egyptian marble exports amount to some 300 million dollars a year, which entails providing the raw material for further export and new investment and employment.

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