Egypt strengthens steel industry with two large-scale investment projects

Suez Steel and China's Xinfeng launch new production facilities to develop Egypt's steel sector

Egypt has taken two strategic steps to strengthen its steel industry. On May 1, 2025, President Abdel Fattah Al-Sisi officially inaugurated the second phase of Suez Steel’s production facilities, which include a concentrator and pelletizing plant, as well as a heavy sections, rails and ties plant – the first of its kind in the country, The Egyptian Gazette reports.

The pelletizing plant, built using Finnish Metso technologies, has a design capacity of 5 million tons of iron ore pellets per year, while the heavy section plant is designed for 800 thousand tons of annual production. These facilities are expected to reduce Egypt’s dependence on steel imports, increase value added in the production chain, and strengthen the country’s position in the regional and global markets.

At the same time, the Chinese Xinfeng Group has begun construction of a large-scale industrial park in the Suez Canal Economic Zone in Ain Sokhna, Kallanish reports. Investments in the project amount to $1.65 billion, the area of the complex will be 3.75 million square meters. In the first phase, four production facilities will be set up, including for auto parts, household appliances, and hot-rolled steel.

The second phase will include five more workshops, including for the production of aluminum-magnesium automotive components, steel structures, and cold-rolled steel. The centerpiece of the project will be Xinfeng Steel’s integrated steel plant, with an annual capacity of 2 million tons of hot-rolled coils.

The new production sites will not only strengthen Egypt’s national industrial base but also help the country compete in the global steel market.

As GMK Center rpeorted earlier, Egypt supports the decarbonization of the steel industry, as investments in green modernization of steelmaking facilities will help maintain the competitive advantage of domestic producers in export markets. In 2023, Egyptian steelmakers produced 9.8 million tons of steel, strengthening their position in the African market. The government continues to prioritize the development of the steel industry and is considering increasing exports through ongoing global infrastructure projects.