Delta Steel Mill Company, a subsidiary of The Metallurgical Industries Company announced investment of $42.3 million towards modernization of its factories, said Mahmoud El Feki, Chairperson of the company.

According to the plan, the modernization project will boost the production capacity of steel billets by almost 12 folds to reach 500,000 tonnes per year. Also, production of iron castings will see 10 folds jump to approximately 10,000 tonnes. The project, in line with environmental standards, will also lead to 40% reduction in energy consumption by factories.

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The company stated that the pilot operation is expected to get completed by September. The first phase of the project, which comprises of a production line of 250,000 tonnes will be completed in October. The second phase, involving commissioning of the next production line of 250,000 tonnes, will be implemented before June next year.

The proposed upgrades will revive the company, taking it from current losses of EGP 50 million to be capable of achieving EGP 150 million in net profits.