Egyptian Steel’s Strategic $42 Million Expansion
Egyptian Steel plans a major $42.34 million investment program over 18 months to modernize its plants. CEO Abdel Fattah Siam confirmed that the program will use a mixed funding model, with half financed internally and half via bank loans. The investment focuses on constructing a limestone plant to supply steelmaking operations and sell excess locally. Lime improves steel quality, reduces impurities, and lowers production costs.
The modernization also includes upgrading equipment at Port Said and Alexandria plants. Egyptian Steel aims to meet international quality and environmental standards, positioning its products for global export markets. Improved efficiency is expected to enhance production capacity and overall competitiveness.
Production Growth and Export Goals
Egyptian Steel operates four plants in Beni Suef, Ain Sokhna, Port Said, and Alexandria, with a combined annual capacity of 2.28 million tons. Production is projected to increase to 1.7 million tons next year, up from 1.2 million tons this year, fueled by higher demand in construction and infrastructure.
The company targets a 30% export share within two years, compared to the current 7%. Existing markets include Europe and Africa, while new markets are being explored. The company also emphasizes carbon footprint reduction, aligning with European environmental standards.
SuperMetalPrice Commentary:
Egyptian Steel’s $42 million program strengthens its position in Egypt’s growing steel market. Modernization and limestone plant construction will lower costs and improve product quality. Export expansion aligns with global steel demand trends. Investors should monitor production scaling and new market penetration, as these steps could significantly increase the company’s revenue and international presence.
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