{"id":606323,"date":"2023-09-14T00:00:00","date_gmt":"2023-09-14T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/14\/egypt-enlists-foreign-firm-for-usd-1-bn-steel-complex\/"},"modified":"2023-09-14T00:00:00","modified_gmt":"2023-09-14T00:00:00","slug":"egypt-enlists-foreign-firm-for-usd-1-bn-steel-complex","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/14\/egypt-enlists-foreign-firm-for-usd-1-bn-steel-complex\/","title":{"rendered":"Egypt enlists foreign firm for USD 1 bn steel complex"},"content":{"rendered":"

The government plans to open a USD 1 bn flat steel production complex <\/strong> in cooperation with an unnamed international company, according to a cabinet statement<\/a> Wednesday. Cabinet spokesperson Nader Saad said that production will be exported and used for the local market.<\/p>\n

What does USD 1 bn get you these days? <\/strong> The two-phase steel production complex will have an annual production capacity of 1.8 mn tons and directly employ 2k people. Production is set to start 18-24 months after all approvals have been obtained The complex has already gotten the greenlight from the Suez Canal Economic Zone to operate as a special economic zone, though it\u2019s not yet clear where it will be located. <\/p>\n

Flat is the new black: <\/strong> The proposed complex will make forms of flat steel that have not previously been manufactured domestically. The aim is that the locally produced flat steel plates, coils, and slabs will replace imported components used to build bridges, trains, electric cars, electrical transformers, ships, energy infrastructure, and household appliances, Saad said.<\/p>\n

This isn\u2019t the only steel project we\u2019ve heard about recently: <\/strong> Russia-based steel maker Novostal M is reportedly planning<\/a> to spend USD 400-500 mn to set up a factory in Egypt.<\/p>\n

Expect more foreign steelmakers to enter the market: <\/strong>The government is planning to issue six more pellet steel production licenses to major foreign investors or local-foreign consortiums in 2024, an Industrial Development Authority (IDA) source recently told Enterprise. Prior to the war in Ukraine, steel licenses were granted to local firms, but the government is now prioritizing foreign companies to attract FX into the country, our source said.<\/p>\n

That could mean even tougher competition for local firms: <\/strong>Many steel producers are struggling amid soaring production costs, slowing demand, and raw material shortages prompted by both the slowdown in the economy and the FX crunch.<\/p>\n","protected":false},"excerpt":{"rendered":"

The plant will have an annual capacity of 1.8 mn tons<\/p>\n","protected":false},"author":1,"featured_media":606324,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7255],"tags":[317,72,7196,131,416],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-606323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing","tag-commodities","tag-enterpriseam","tag-industry","tag-manufacturing","tag-suez-canal-economic-zone","wpautop","entry"],"acf":{"mongo_id":"8247ff1b-1b6f-43e0-944c-6d63c4fbf2ac","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/9\/950.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt enlists foreign firm for USD 1 bn steel complex","related_issue":[606316],"teaser":"The plant will have an annual capacity of 1.8 mn tons","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/9\/.8827700d-3515-457e-9e53-f48533eac04e.mp3"},"yoast_head":"\nEgypt enlists foreign firm for USD 1 bn steel complex - 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