The Ministry of Public Enterprise Sector revealed the latest development in the Delta Steel factories, affiliated to the Holding Company for Metallurgical Industries, at about $45 million. The project aims to replace the old rebar factory, which produced about 46,000 tonnes, with the new plant, with a total capacity of 500,000 tonnes of billets annually in two phases.
The ministry indicated in a recent report that in addition to establishing new steel and cast iron foundry with a capacity of 10,000 tonnes annually with a total investment cost of 45 million dollars to develop the company, to be financed from the proceeds of selling 32 unused acres owned by the company.
The company explained that the license was obtained from the Industrial Development Authority to increase production capacity. However, the first phase of the project was implemented to increase production capacity by 250 000 tonnes. Which was positively reflected in the performance of the company, which turned to profitability at about 24 million in 2020/2021 and 21 million in 9 months of the fiscal year 2021/2022, compared to a loss of 49 million pounds in the fiscal year 2019/2020.
The company added that the second phase of work is underway to increase production capacity by 250 000 tonnes, and the Dutch company GEMCO was selected through a public tender to implement the foundry construction project. The implementation is expected to be completed in 2023.