Mohamed El Garhy Vice Chairman of the Board of Directors of El Garhy Group, announced that he had applied for a license to produce billets with a production capacity of 1.1 million tonnes per year, and the investment cost of the project exceeds 4 billion pounds.
According to a statement by El Garhy Group on February 21, this came within the framework of the Industrial Development Authority’s announcement of the start of receiving special offers to obtain new iron licenses by the bidding system for the production of iron and steel products (Billets – sponge iron – iron pellets), or the expansion of existing ones.
Al-Jarhi said, in the statement, applying for the billet production license came to strengthen the integrated iron industry, to meet the needs of the local market for the iron and steel products, and increase production to bridge the import gap. In addition to that, provide the requirements for the expansion and development plans to provide the growing market needs, and support the urban development plan and the future construction expansions.
He added that it also aims to obtain the new billet license to create a local surplus directed to exports, to support national plans to reach merchandise exports to about $100 billion, especially since the semi-integrated steel factories (rolling mills) that depend on filling their iron ore needs through imports, always finds itself exposed to global changes in energy and metal prices, which are witnessing record highs from time to time.
El Garhy considered that the potential of the local iron sector enables it to compete strongly in the local and global markets, and therefore it is no longer logical to leave this strategic industry subject to frequent price fluctuations in the iron ore import prices, and thus it cannot compete with imported iron and local integrated factories, which pushes some to stop production, which negatively affects the Egyptian production and export sectors.