Egyptian Steel plans to launch a new investment program worth nearly EGP 2 bln (USD 42 mln) within the next 18 months, beginning early next year, according to Abdel Fattah Siam, general manager of the company’s Alexandria plant, speaking on the sidelines of the Trans MEA exhibition, Al Arabiya reported.
Siam said the investment will be funded through a mix of internal resources and bank financing, likely split evenly. Part of the capital will be used to build a lime plant to support the company’s steelmaking operations and sell surplus output. The remaining investment will go toward upgrading production lines and adding new equipment at the company’s Port Said and Alexandria facilities.
Egyptian Steel operates four plants with a combined capacity of 2.28 mln tons per year, including rebar and billets. The company expects to lift production and sales to 1.7 mln tons next year, up from around 1.2 mln tons expected by the end of this year.
Siam added that Egyptian Steel aims to increase exports to 30pct of production within two years, compared with about 7pct currently, as domestic demand historically absorbed most output. The company exports to Europe and Africa and plans further expansion, noting improvements in its carbon footprint despite stricter European requirements.
He described Egypt’s steel industry as promising, supported by new licenses recently issued by the Ministry of Industry to expand capacity. In September, eight Egyptian companies received licenses to produce 3.7 mln tons of billets, part of a government strategy to boost local manufacturing and reduce imports.
Siam expects the new capacities to take 4-5 years before production reaches the market. He noted that adding capacity during downturns positions the industry to capture larger market shares when demand strengthens, especially given reconstruction and infrastructure needs in neighboring countries.
1 USD / 47.1 EGP
