Egyptian Steel is preparing to roll out an ambitious investment programme valued at nearly EGP 2 billion over the next 18 months, beginning early next year, according to Abdel Fattah Siam, CEO of the company’s Alexandria plant. He told Al Arabiya Business that the expansion plan will be financed through a balanced structure, with roughly half the capital drawn from internal resources and the remainder secured through bank lending.
The programme includes several new projects, most notably the construction of a limestone production plant that will supply the company’s steelmaking operations and sell excess output domestically. Lime plays a critical role in purifying steel and improving overall quality while reducing production costs. Alongside new investments, Egyptian Steel intends to upgrade production lines at its Port Said and Alexandria facilities by installing modern equipment and replacing outdated components to enhance efficiency and meet international environmental and quality standards—key requirements for export markets.
The company operates four plants with a combined annual capacity of around 2.28 million tonnes across Beni Suef, Ain Sokhna and Port Said. Production and sales are expected to rise to 1.7 million tonnes next year, up from 1.2 million tonnes in 2024, supported by stronger demand in construction and infrastructure. Siam added that Egyptian Steel aims to lift its export share to 30 percent of total output within two years, compared with about 7 percent today, noting that the company has made progress in cutting emissions to align with European regulations.
He said the sector is entering a promising phase as government measures support local manufacturing and curb imports. In September, the Ministry of Trade and Industry awarded licences to eight companies to produce blooms with a combined capacity of 3.7 million tonnes. New capacities are expected to come online within four to five years, giving established producers room to consolidate during a period of market softness.
Earlier this year, the industry saw two major developments: the inauguration of the second phase of Suez Steel’s expanded operations—which included enrichment, agglomeration, and the country’s first heavy sections, rail and sheet-pile mill—and the launch of a large industrial park by China’s Xinfeng group in the Suez Canal Economic Zone, covering auto parts, home appliances and hot-rolled steel production.
