Egypt is going to build two new steel plants

Egyptian Steel, a leading steel products manufacturer headquartered in the capital Cairo, plans to build two new plants by the middle of next year, increasing production capacity to 3.5 million tonnes per year and increasing its market share.

Ahmed Abu Hashima, head of Egyptian Steel, noted that in addition to his plants in Alexandria and Port Said, he is focused on launching a facility in the city on the Beni Suef Nile in July-August this year with a production capacity of 1.36 million tonnes.

Abu Hashima said he also hopes to build a plant at Ain Shukhana on the shores of the Red Sea by mid-2016. The company aims to acquire a 20-25 percent market share once production starts at all of these factories. Egyptian Steel currently captures 10 percent of the market. There is now good demand in the domestic market and an increase in housing construction and infrastructure projects is expected.

These expansion plans reflect the growing hope of metallurgists that Egypt's economy can recover from years of turmoil caused by the uprising that toppled Hosni Mubarak in 2011.

Egyptian Steel currently produces 800,000 tonnes of steel per year and is set to increase its annual capacity to 3.5 million tonnes upon completion of new projects.

Abu Hashima said he has reviewed a feasibility study for a fifth plant that will operate on coal. He is attending an investment conference at the Red Sea resort of Sharm el Sheikh in March, hoping the government will raise billions of dollars in cash.