Egypt to build a plant for the production of flat rolled products for $1 billion

Egypt plans to build an integrated steel plant for the production of flat rolled products. Investments in the project are calculated at the level of $1 billion. Reuters reports about it with the reference to the statement of the Cabinet of Ministers of Egypt.

The capacity of the plant will be about 1.8 million tons of flat rolled products per year. The products will be directed mainly to export markets, while serving the domestic market as well.

The project has already been approved by the General Administration of the Suez Canal Economic Zone and will be created in cooperation with an international company, the name of which has not been disclosed.

Earlier, Egypt was trying to attract foreign investment in conditions of acute shortage of foreign currency and economic pressure. In particular, in March 2023, Hong Kong’s CK Hutchison Holding and China’s Cosco Shipping Ports announced investments in terminals in the ports of Ain Sokhna and Alexandria. In addition, the country’s government announced the intention of China Energy to invest in a large project for the production of green hydrogen in Egypt.

In 2022, steel enterprises of Egypt reduced steel production by 4.6% compared to 2021 – to 9.8 million tons. Thus, the country took 20th place in the global ranking of WorldSteel steel producers.

As GMK Center reported earlier, the Chinese company Xinxing Ductile Iron Pipes intends to invest $2 billion for steel plants in the economic zone of the Suez Canal. It is planned that enterprises for the production of pipes and steel products, including for export, will be located in the industrial zone in the port of Ain Sokhna, developed by the Chinese company Tianjin TEDA.