Egypt is set to establish the region’s first ship scrapping project, a venture poised to revolutionize the country’s steel production industry and position Egypt as a leader in sustainable metal recycling across Africa and the Middle East. This ambitious project, situated over two million square meters in West Damietta Port, promises to significantly bolster Egypt’s economy and environmental sustainability efforts.
The initiative aims to recycle ships, construct new vessels, and offer repair services, accommodating ships up to 400 meters long with a light displacement of up to 40,000 tons. Within five years, the project is projected to yield 1.5 million tons of scrap annually, fulfilling 66% of the local market’s scrap needs for rebar production—crucially reducing Egypt’s dependence on imported scrap and conserving foreign currency reserves.
Currently, Egypt produces approximately eight million tons of rebar annually. However, with a shortfall in locally sourced scrap, the country imports around three million tons to meet demand. This project is expected to bridge this gap, significantly increasing local scrap availability and aligning with international trade standards.
Kamel El-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, emphasized the project’s alignment with presidential directives to harness private sector collaboration. “This initiative focuses on optimizing raw material investment for the iron and steel industry, reducing reliance on imported scrap, and advancing towards a sustainable, green steel production ecosystem,” El-Wazir stated during the MoU signing.
The project is not only an economic boon but also a job creator, with an estimated 4,000 direct and indirect jobs anticipated. By establishing a state-of-the-art ship recycling yard adhering to international standards, Egypt will engage with leading global shipping and container companies, further embedding itself into the international maritime industry.
Dr. Ahmed Akar, an expert in industrial development, noted, “This project is a testament to Egypt’s forward-thinking approach to industrial sustainability. By leading in ship recycling, Egypt can set a benchmark for eco-friendly practices in the region.”
