Egypt launches stimulus package to support local flat steel production

The Egyptian government recently announced a new stimulus package to support and expand local production of rolled steel products, including cold-rolled, galvanized, and pre-painted steel sheets and coils, according to The Middle East Observer.

These products are critical to key sectors such as household appliances, automotive, construction, and medical equipment.

The stimulus package is designed to reduce lead times, lower initial costs, and mitigate risks for investors.

Its key provisions include

• preferential pricing for industrial land, priority allocation for new steel projects
• comprehensive preferential financing for working capital and capital expenditures (e.g., production lines)
• Issuance of operating licenses around the clock, provided that a complete set of documentation is submitted;
• immediate access to electricity, gas, water, roads, and telecommunications after project approval;
• preferential supply rights – Egyptian sheet metal will have priority in state or national projects.

The Egyptian Ministry of Industry and Transport explained that these measures are aimed at increasing the competitiveness of local products, expanding the country’s production capacity, reducing imports, and increasing industrial exports.

The stimulus package, the publication notes, comes amid growing attention to industrial independence and import substitution. Egypt is actively promoting localization in sectors such as steel, automotive components, and mechanical engineering.

In parallel, the government recently offered 1,386 fully serviced industrial plots in 23 provinces with a total area of 6.8 million square meters with favorable utilities and infrastructure conditions to attract investment.

Deputy Prime Minister and Minister of Industry and Transport Kamel El-Wazir announced in September that the government had identified 28 strategic industries as priority sectors for localization and investment support. Among them was the production of flat rolled products.

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.