Garawany Group’s subsidiary, International Steel Industry, plans to invest EGP 5.5 bln (USD 113 mln) to upgrade and expand state-owned Delta Steel under a nine-year lease, CEO Ahmed El Garawany said. The expansion aims to boost Delta Steel’s production capacity to 800,000 tons annually by October 2025 and 1.2 mln tons by January 2027. The investment will be 75pct self-financed, with the remaining 25pct coming from local and European banks.
Delta Steel, a subsidiary of Metallurgical Industries Holding, will allocate 60pct of its production to Egypt, 20pct to Gulf markets (mainly Saudi Arabia), and 20pct to Europe. El Garawany also mentioned that while International Steel Industry initially proposed a joint investment with the Public Enterprise Ministry, the ministry did not respond. As a result, the company will either recover its costs or remove its equipment at the end of the lease.
Last year, several firms, including International Steel Industry, expressed interest in acquiring a stake in Delta Steel. A fair value study by Global Appraisal Tech valued Delta at USD 85 mln, significantly lower than the Public Enterprise Ministry’s USD 170 mln valuation. Consequently, International Steel Industry opted for a lease agreement instead of purchasing a stake.
Founded in 1947, Delta Steel specializes in producing billets, rebar, wire mesh, and casting products.
1 USD / 48.6 EGP
