The company plans to increase the production of flat rolled products
The International Finance Corporation (IFC), a member of the World Bank Group, has announced a partnership with Egypt’s Kandil Steel, one of the largest producers of flat products in the Middle East and Africa, informs Daily News Egypt.
IFC will provide Kandil Steel with a $25 million loan – the funds are intended to improve the company’s operational and financial sustainability. The International Finance Corporation will also offer advisory support in developing a decarbonisation program to help Kandil Steel reduce its carbon footprint.
Kandil Steel is among Egypt’s top ten exporters, trading with more than 40 countries in Africa, Europe, the Middle East and North America.
«Partnership with IFC provides a strong impetus for future sustainable growth, supporting our expansion plans to increase annual rolled production from 500,000 to 800,000 tons by the end of 2024,» noted Amr Kandil, CEO of Kandil Steel.
The raised funds will also enable the company to secure additional raw materials necessary for the production of high-quality steel products.
According to Amr Kandil, the IFC financing, provided in a challenging local and global environment, will help the company meet the growing demand for steel products in Egypt and increase its presence in export markets.
Currently 40% of the company’s current production is exported.
As GMK Center reported earlier, Egypt plans to build integrated steel plant for the production of flat rolled products. Investments in the project are calculated at the level of $1 billion. The capacity 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.
Also, in 2022, steel enterprises of Egypt reduced production of steel 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.