Egypt receives four steel plant licence applications

Posted on 14 June 2018
 

Source: Kallanish

Egypt’s Industrial Development Authority (IDA) has received four applications for new steel plant licences, an IDA source tells Kallanish. One of these is from an Arab company not already producing in Egypt.

Some reports in the Egyptian press earlier this month suggested one of the applicants is Abu Dhabi-based Emirates Steel (ESI). The longs producer is looking at Borg Al Arab near Alexandria, or Sadat City as possible locations for a new steelworks. Sadat City is home to Ezz Steel’s ESR rebar mill and Beshay Steel’s recently-commissioned Egyptian Sponge Iron & Steel Company (Esisco) plant.

The IDA source says, however, it is too early to reveal the identities of the licence applicants. Two of the licences are for existing steel plant expansions, while the other two are for green-field plants.

ESI did not respond to requests for comment.

Competition for steel supply is heating up in Egypt, with Saudi Iron & Steel Company (Hadeed) and Rajhi Steel reported to have recently been approved to supply rebar to Egypt. This follows the recent launch of Egyptian Steel’s Ain Sokhna rebar steelworks.

Egyptian rebar sales in January-February grew 46% to 1.3 million tonnes, while rebar production soared 61% to 1.46mt, according to Central Bank of Egypt (CBE) data.

    



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