Press Releases

Egyptian Steel” plans to invest LE8 bn. to produce 2.5 million tons in 2014

24 April, 2012

Ahmed Abou Hashima, Chairman of Egyptian Steel Group, declared that he had a group of Emirati investors contributing as partners in funding the group that seeks producing 2.5 million tons of rebar by 2014.

Abou Hashima said to “Al-Khaleej” that UAE investments would flow significantly to Egypt once the state’s institutions have been established after the presidential elections because the UAE people have a great deal of love and appreciation to Egypt. “It is expected that the investments volume in the entire group will reach LE8 bn which is equivalent to $ 3.1 bn in 4 factories including 2 in Port Said, one in Alexandria and highly developed factory in Beni Sueif that is run with the latest technology in the world in steel making field, along with the new license of Port Said plant,” he pointed out.

He stressed that the new plant of Beni Sueif would produce 850 thousand tons of billet and 600 thousand tons of rebar, and the same matter would happen for the new license in Port Said as it would use the same advanced technology. “Port Said plant that we will develop produces currently 300 thousand tons a year, and after being developed, it will reach 550 thousand tons. The plant of Alexandria will be developed to produce 250 thousand tons of wire rods,” he said.

“The demand for iron in the Egyptian market is still significant and the evidence on this is that the production of all the steel plants in Egypt is not sufficient to the local market; we import from abroad. Consequently, the future of steel industry in Egypt is very good and promising as the market is still desiring for commodity because of its expanding volume and magnitude of construction and development being executed,” he stated. Ahmed Abou Hashima stressed that Egyptian Steel Group signed a contract with the Italian company, Danieli, one of the most giant companies globally that relies on the latest technology in the field of manufacturing steel in the world. “We will establish a plant in Beni Suef that will be the biggest plant in the world to produce steel using direct casting system. It is the highest technology worldwide to be used in this field.

This plant has no matching in the world but two: one in California is the US and the other in Greece. None of these two plants produces more than 250 thousand tons only. Our plant will be the first of its kind in the world as of the production capacity by this system as it depends on inserting raw material and be turned into rebar directly. This technology is characterized by preserving the environment, small mills and high quality end product. This technology does not exist in the Middle East at all,” he added.

As for the impact of the advanced technology on the number of workers that the plant can have, the Chairman of “Egyptian Steel” said, “Actually it will make us depend on less number of workers, but we considered it our responsibility to assume a social role towards the society and we will strive to provide the biggest possible number of job opportunities.

We will establish from two to three centers for advanced training to rehabilitate the employment we need. At the same time, there are direct job opportunities within the plants and indirect jobs as well, the latter will be significantly more as it is represented in the river transport of the ore, transportation and storing.

We expect that our plants will accommodate for about 9000 workers directly and indirectly.”

As quoted from Dar Al-Khaleej