A group of Qatari investors are discussing with an Egyptian investor the establishment of a new iron and steel factory with initial investments of up to $100 million, with the target to start operations early next year, according to Al Borsa newspaper.
The local investor is set to provide the land and construction in exchange for a 51% stake in the project, while the Qatari side will be responsible for financing the purchase of production lines and raw materials, and will own a non-controlling stake in the factory at 49%.
The new company also intends to direct about 80% of its production to the Arab, African and Turkish markets, with the remaining production allocated to the local market. The company, which is still under construction, plans to submit an application to the Industrial Development Authority to obtain a license to produce reinforcing steel and steel sections during the first half of this year. Once the license is obtained, the company will contract with the Italian company Danieli to purchase the production lines.