Egyptian Steel is preparing to implement an ambitious investment plan worth nearly EGP 2 billion over the next 18 months, starting at the beginning of next year, according to Abdel Fattah Siam, General Manager of the company’s Alexandria plant, in statements to Al Arabiya Business on the sidelines of the Trans MEA exhibition.
Siam explained that the company plans to finance the new investment plan through a mix of internal resources and bank loans, likely split evenly between the two sources.
The plan includes several new projects and production expansions, most notably the establishment of a lime plant to serve the company’s steelmaking operations and sell the surplus to the local market. Lime is used in the steel smelting process to remove impurities, thereby improving the quality and purity of the final product and reducing production costs.
The investment plan also involves upgrading existing production lines at the Port Said and Alexandria plants, by adding new machinery and modernizing older equipment to enhance efficiency and meet international quality and environmental standards required for export markets.
Egyptian Steel is one of Egypt’s leading steel producers, operating four plants with a total annual production capacity of approximately 2.28 million tons. These plants are located in Beni Suef, Ain Sokhna, and Port Said, producing both reinforcing steel and billet in various grades and sizes.
The company expects a significant jump in production and sales next year, reaching about 1.7 million tons compared to 1.2 million tons expected by the end of this year, reflecting confidence in stronger domestic demand driven by the construction and infrastructure sectors.
Siam added that the company also aims to increase exports to 30% of total output within two years, compared to the current 7%, as most production in recent years has been absorbed by the local market. The company currently exports to Europe and Africa and plans to expand into new markets in the coming years.
He noted that Egyptian Steel has made significant progress in reducing its carbon footprint, in line with European environmental requirements, which enhances the company’s competitiveness in global markets.
Siam emphasized that Egypt’s steel industry is entering a promising phase, supported by government efforts to boost local manufacturing and reduce imports. In September 2025, the Ministry of Trade and Industry granted eight Egyptian companies new licenses to produce billet, with a combined capacity of 3.7 million tons per year, as part of a national strategy to achieve self-sufficiency and meet growing demand.
He expects the new production capacities to become operational within four to five years, noting that investing during slower market periods provides companies with an advantage in capturing larger market shares when demand strengthens.
Siam concluded that the anticipated growth in Egypt’s steel industry will be driven by domestic mega-projects as well as reconstruction efforts in neighboring Arab and African countries, creating new opportunities for Egyptian manufacturers to expand their production base and strengthen their regional presence as a key supplier of steel products.
