The Industrial Development Authority at the Ministry of Trade and Industry in Egypt announced the launch of the booklet of requirements and controls to establish 6 projects to produce billets, sponge iron and iron pellets, or expand existing ones at the local level, in preparation for obtaining a production license.
Engineer Mohamed Fadel Al-Zalat said that the local offering includes 6 production licenses for various iron and steel products, with a total production capacity of 1.3 million tons of billet, 2.5 million tons of sponge iron, and 16 million tons of iron pellets.
He added that the licenses are divided, so that 3 licenses for billet production will be offered locally (two licenses with a production capacity of 1.1 million tons per year each, and one with a production capacity of 200,000 tons per year) and a license for the production of sponge iron with a production capacity of 2.5 million tons per year, as well as two licenses for the production of pellets. Iron with a production capacity of 8 million tons per year each.
The head of the authority indicated that companies that add production stages that increase the integration rates will be granted discount rates from the value of the license, in order to encourage more integration in the different stages of production, and increase the rates of local manufacturing.
Al-Zalat also made it clear that the requirements and controls brochures will be available at the authority’s headquarters to those wishing from November 7 to November 18.
He pointed out that the iron and steel industry is one of the pivotal strategic industries, which is one of the most important pillars of the national economy, and that industry is of particular importance as it is an intermediate industry for many other industries, in addition to its large contribution to the national income and the balance of payments, and it provides more than 30,000 Direct job opportunity, unlike thousands of indirect job opportunities.
He added that the iron industry goes through several stages, starting with ore of iron pellets, then sponge iron, passing billet and even manufacturing rebar.
He pointed out that the manufacturing process in Egypt is incomplete in the stages of iron pellets and sponge iron, so the General Authority for Industrial Development, under the auspices of the Ministry of Trade and Industry, decided to announce the launch of new licenses for the production of iron and steel products (billet, sponge iron, iron pellets) or the expansion of existing ones.
The head of the authority stressed that this local proposal comes within the framework of the strategy of the Ministry of Trade and Industry to meet the needs of the local market of iron and steel products, increase production to bridge the import gap, and provide the necessary requirements for expansions of development plans to meet the needs of the growing market, in order to meet the urban development plan and construction expansions during the next stage.