Egypt’s Arcosteel announces $126 million investment in new steel capacity

Egyptian special steel producer Arcosteel, part of the El Ashry Steel Group, has announced a large-scale investment program for 2026 worth EGP 6 billion ($126 million) aimed at expanding production capacity and strengthening the company’s position in both domestic and foreign markets, SteelOrbis reports.

According to the plan, the company will build 12 new wire drawing lines and create a cold-rolled steel production line. This allows Arcosteel to move into the production of higher-quality steel products with added value, primarily targeting the automotive, machinery, and engineering sectors, where demand for special steel grades remains consistently high.

The company also plans to significantly expand its export presence. Arcosteel currently ships around 100,000 tons of semi-finished products and billets abroad and aims to generate $90 million in export revenue. The new investments are expected to strengthen Egypt’s exports of special steel, wire products, and cold-rolled steel to key markets, including Turkey, Italy, Spain, Germany, Poland, and Bulgaria.

Since 2021, following its acquisition by the El Ashry Steel group, Arcosteel has already increased its annual production capacity from 140,000 tons to 240,000 tons. The new investment phase is expected to strengthen Egypt’s position as a supplier of special and processed steel, expanding the company’s focus beyond traditional semi-finished products.

Industry analysts note that Arcosteel’s initiative comes amid general trends of growing investment in Egypt’s metallurgical sector and industry in general, as well as the state’s active policy of supporting exports and attracting private capital.

The expansion of special steel production could strengthen Egypt’s role as a regional steel production hub and provide a boost for further export growth in Africa, Europe, and the Middle East.

It should be recalled that the Egyptian government recently announced a new package of incentives to support and expand local production of rolled products – cold-rolled, galvanized, and pre-painted steel sheets and coils. The incentive package is designed to reduce lead times, lower initial costs, and mitigate risks for investors.