The Arab Special Steel Company “ARCO Steel” applied to the Industrial Development Authority to obtain a license to produce billet with a production capacity of 1.1 million tonnes, at a value of EGP345 million.
Government sources said that the company submitted a request to the Industrial Development Authority on February 15 to obtain a license to produce billet and is awaiting the decision session set by the authority next April.
El-Garhy Steel Group is also competing for a license with a capacity of 1.1 million tonnes per year to produce billet, and the company has allocated about 4 billion dollars to complete the project, according to previous statements by Mohamed El-Garhy, vice-chairman of the company’s board of directors.
In October last year, the Industrial Development Authority had issued six licenses for the production of iron products (Billet, sponge iron, and iron pellets) with a total production capacity of 2.4 million tonnes of billet yearly. Two licenses for large lines with a capacity of 1.1 million tonnes per license and a license with a capacity of 200 000 tonnes for small lines. 2.5million tonnes of sponge iron, and 16 million tonnes annually for iron pellets with two licenses for the iron pellets production with a production capacity of 8 million tonnes annually for each.
Arco Steel was established in 1992 as an Egyptian joint stock company under Law 230/1989. The company owns a mixed Egyptian and Arab capital of $100 million, while the company’s total investments amount to about $278 million, with annual production capacities of about 140,000 tons of high-quality iron.
It is worth noting that El-Garhy Steel Group and Ezz Steel submitted a request to the Industrial Development Authority to obtain licenses for iron production as part of the authority’s recent proposals.