Egyptian Steel plans to launch a large-scale investment program worth $42.3 million

Egyptian Steel is preparing to launch a large-scale investment program worth nearly EGP 2 billion ($42.34 million), which the company will implement over the next 18 months, starting at the beginning of next year. This was announced by Abdel Fattah Siam, CEO of the Alexandria plant, in a comment to Al Arabiya Business.

According to him, the plan will be financed using a mixed model. Approximately half of the funds will come from internal resources, and the other half from bank loans. The investment program includes the launch of several new projects and expansion of production, the main one being the construction of a limestone plant to supply Egyptian Steel’s steelmaking processes and sell surpluses on the local market. Lime is used in steelmaking to purify metal from impurities, which improves product quality and reduces production costs.

The company also plans to modernize existing lines at its plants in Port Said and Alexandria by installing new equipment and upgrading outdated components to improve efficiency and compliance with international quality and environmental standards for export markets.

Egyptian Steel operates four plants with a total annual capacity of approximately 2.28 million tons, located in Beni Suef, Ain Sokhna, and Port Said. The company expects production and sales volumes to increase to 1.7 million tons next year, compared to 1.2 million tons this year, due to improved demand in the construction and infrastructure sectors.

Siam also said that the company plans to increase its export share to 30% of total production within two years, compared to the current level of about 7%. Egyptian Steel already supplies products to Europe and Africa and intends to enter new markets. He added that the company has made significant progress in reducing its carbon footprint in line with European requirements, which increases its competitiveness.

According to Siam, Egypt’s steel industry is entering a promising phase thanks to government measures to support local production and reduce imports. In September, the Ministry of Trade and Industry issued new licenses to eight companies to produce blooms with a total capacity of 3.7 million tons. He noted that the launch of new capacities is expected in 4-5 years, and investments during periods of market weakness allow the company to strengthen its position for the future.

In May of this year, Egypt took two strategic steps to strengthen its steel industry.

At the beginning of the month, the second phase of Suez Steel’s production facilities was opened, including an enrichment plant and an agglomeration plant, as well as a heavy section, rail, and sheet pile plant—the first of its kind in the country. At the same time, the Chinese group Xinfeng began construction of a large-scale industrial park in the Suez Canal economic zone in Ain Sokhna. In its first phase, four production facilities will be created, including for auto parts, household appliances, and hot-rolled steel.