International Steel for Industry intends to pump investments worth 5.5 billion pounds to develop the Delta Steel Factory, and increase its production capacity of reinforcing steel, steel coils and steel squares during 2025.
Ahmed Al-Jarwani, Chairman of the Board of Directors of International Steel for Industry, told “Al-Arabiya Business” that the company will finance about 75% of the value of the investments itself, and the remaining percentage will be provided by local and European banks.
He added: “Negotiations are underway with local and European banks that provide a guarantee for the company, and the negotiations have reached an advanced stage with which development operations are expected to begin during the next year.”
The expansion and development operations are being carried out at the Delta Steel Factory, which will be implemented by International Steel for Industry through a 9-year lease contract, according to Al-Jarwani.
The company aims to increase its production capacity to about 800,000 tons of steel squares and 600,000 tons of steel and pre-stressed iron coils by the end of next year.
International Steel Industries seeks to direct 60% of its products to the local market, 20% to the Gulf market, led by Saudi Arabia, and 20% to European markets.
He explained, “We aim to expand the export of pre-stressed bars to Saudi Arabia in light of the expansion of railway networks in the Kingdom during the current period.”
Pre-stressed iron bars “PC Wire” are used in the manufacture of railway sleepers, electrical poles, pre-cast architectural structures, and concrete sewage pipes, as well as in the manufacture of water tanks with the aim of providing part of the state’s needs and reducing the import bill, according to Al-Jarwani.
Al-Jarwani said, “The demand for iron is currently low, and I expect it to grow in the coming period with the announcement of the start of implementation of the Ras Al-Hikma project on the North Coast by contracting companies. Also, the cancellation of planning and construction requirements issued in March 2021 will also drive demand from the commercial sector, after the decision is activated.”
Over the past few days, the iron market in Egypt has witnessed a decline in prices, with a ton of iron ranging between 38 and 40.6 thousand pounds per ton from the factory floor and between 39-42 thousand pounds for the consumer.
Al-Jarwani said that he does not expect iron prices to continue to decline in Egypt during the current period, as global iron prices are recording an increase with the growth in the prices of raw materials and other production inputs.