Prime Minister Mostafa Madbouly oversaw the signing of a significant agreement between the Egyptian Chemical Industries Company (KIMA) and Saudi Al-Sharq Real Investment. This collaboration entrusts Al-Sharq, an Egyptian company with Saudi backing, with the operation and management of an electric arc furnace dedicated to producing silico manganese alloys.
The agreement is set to invigorate Egypt’s manufacturing landscape, particularly in the production of silico manganese alloys, crucial for the steel industry. Al-Sharq will handle operations, maintenance, and the sale of these alloys, adhering to international quality standards. In exchange, Al-Sharq will compensate KIMA with $75 per ton produced and a 30% share of by-product revenues.
The target production volume is a substantial 18,000 tons annually, generating projected revenues of $1.4 million for KIMA. Additionally, by-products are expected to contribute $400,000, elevating KIMA’s total anticipated annual revenue to $1.8 million. Al-Sharq also guarantees a minimum annual payment of $600,000, ensuring stable financial returns for KIMA.
The electric arc furnace, crucial to this operation, was rehabilitated after five years of inactivity, thanks to a 53 million Egyptian pounds investment by the Egyptian Ferroalloys Co. Mohamed Shimi, Minister of Public Business Sector, emphasized the significance of this rehabilitation, which now incorporates cutting-edge technologies to optimize manganese ore processing.
With the manganese ore concession secured in the Abu Shaar region, Al-Sharq has conducted extensive research to leverage these resources effectively. This partnership is expected to create jobs and boost local economies, aligning with Egypt’s broader goals of economic revitalization and industrial diversification.
