In an interview with Al Arabiya, the CEO of the Egyptian Ezz Steel Company, Eng. Ahmed Ezz, denied any intention to merge the two companies, Ezz Dekheila and Ezz Steel.
Eng. Ahmed Ezz said that Ezz Steel’s investment in Egyptian Steel is an investment for the future, given the conviction of the technology used in Egyptian Steel, with confidence in the feasibility of investing in it.
He added that investing in Egyptian Steel is a silent partnership, “and we do not interfere in the management, taking into account all legal considerations.”
Ezz Dekheila Steel, Alexandria, the largest rebar producer in the Middle East and North Africa, had acquired 18% of the total equity in Egyptian Steel for managing steel mill projects from Ahmed Abu Hashima, the founding partner, and Abu Hashima Steel for managing steel projects at 2.5 billion pounds to be paid from the Company’s resources.
Regarding the group’s debts, Ahmed Ezz said that the ratio of debt to the value of assets is very low, and the percentage of debt to one tonne of production is within safe limits, as well as for the sector in the world.
Ahmed Ezz revealed the investment during the last year in a significant expansion that exceeds more than one million tons of liquid steel, which will enter production at the beginning of next year. Therefore, Ezz Steel’s crude steel production in 2023 is expected to reach more than 6.5 million tonnes if the demand pattern continues as it is now.
Press reports had stated that Ahmed Ezz was considering merging Ezz El-Dekheila and Ezz Steel into one entity by using the stock exchange system, with a proposed initial name for the new entity “Ezz Holding” or “Ezz”, which Ahmed Ezz denied.