Egypt has announced its intention to establish an integrated industrial compound dedicated to flat steel production, with investments worth $1 billion, the cabinet said in a statement on Wednesday.
This compound, designed to have an annual flat steel production capacity of 1.8 million metric tons, would cater to both global export markets and local demand.
The project has received approval from the General Authority for the Suez Canal Economic Zone and will be developed in collaboration with an international company, Reuters reported.
However, the cabinet did not disclose the identity of the company involved.
In August, two government sources revealed that the Egyptian government was contemplating granting investors licenses to produce rebar and flat steel in 2024. This move marks the first time since 2021, according to Asharq Business.
As of that time, the Russian metallurgical firm Novostal-M Holding was reportedly planning initial investments in the range of $400 to $500 million to establish a steel factory in Egypt.
One of the sources noted that the government is keen on resuming the issuance of iron production licenses, especially to foreign investors who run mega projects, in an attempt to alleviate the foreign currency shortage and shore up local manufacturing.
Source: Business Insider