by Ahmed El-Mahdi
Brick factory workers are now living in a state of suffering and fear of the unknown as a result of several crises, including natural gas, of which the Ministry of Petroleum provided 50 per cent for the needs of Arab Abo Saaed brick factories. The ministry does not provide the required pressure to operate furnaces; in addition the ministry raised the usufruct for the metre of land to LE12 instead of LE1.
Mohammed Amer head of the Factory Division of the Chamber of Construction Materials in the Federation of Industries, said that the number of brick factories in the Arab Abo Saaed area operating by gas is 281, and the Ministry of Petroleum asks for gas expenses from the factories whether gas is provided or not.
He added, “We had talked with Sherif Ismail when he was the Minister of Petroleum and he did not solve the problem, and the factories do not find their way towards a solution after the Town Gas Company confirmed that it is borne by losses as a result of the lack of gas pressure. It is not only factories incurring losses, and what is happening threatens the investments which are estimated at roughly LE4 billion. “
Ali Senger, vice president of the Brick Factories Association in Arab Abo Saaed region, said that the low gas pressure crisis began in 2013, and that the contract was on 100 thousand cubic metres per hour, but the ministry provides 50 per cent of the needs. He pointed out that the ministry provides only a quarter of the pressure that factories need.
He called for the reconsideration of the factories that are currently accountable to the dollar. He pointed out that the factories will pay the bills in Egyptian pounds but equivalent to the value of the dollar, representing a financial burden on factories which are based on the contract price of bricks for a period of time.
Salah Abu Bakr, head of the Brick Factories association in Arab Abo Saaed, affirmed that despite reaching the instalment debt, estimated at LE300 billion on 36-month dues, there are factories incapable of paying arrears. He illustrated that the debt is growing because of the stability of expenses amid declining production due to the continuation of recession in the markets.
He pointed out that 25 per cent of the factories are closed and 75 per cent are working with half productive energy.
He added that the factory is facing another crisis with Giza property to raise the usufruct fees to LE12 after it was LE1.
In the same context, Mosaad El Shazly, coordinator of Factory Division of the Chamber of Construction Materials, stated that the factory owns 5 per cent of the total area, and the usufruct is worth LE1 per metre. El Shazly pointed out that the director of the management of land property of the Ministry of Agriculture said two months ago that there is going to be a raise in exchange for the right to use.
He clarified that the State is not being fair as it dealt with operating -diesel brick factories by the Egyptian pound while deals for operating gas- brick factories are by the equivalent of the US dollar value. He says this is unfair because gas and fuel oil are not exported but are locally produced and are not imported.
El Shazly pointed out that the continuation of this problem will result in the displacement of at least 42,000 workers, as well as threaten investments in the coming phase.
