The Arab Company for Special Steel Arcosteel, a subsidiary of El Ashry Steel Group, plans to inject new investments worth EGP 6 billion during 2026 as part of its expansion strategy to increase production capacity and strengthen its presence in both local and international markets, according to Ahmed Hammam, Managing Director of the company, speaking to Al Borsa.
Hammam stated that the planned investments will be directed toward adding 12 new wire drawing production lines, in addition to establishing a cold-rolled steel production line, which will contribute to product diversification and higher value-added output.
He explained that Arcosteel is targeting exports of around USD 90 million by the end of the current year, through exporting approximately 100,000 tonnes of special steel (billets). He noted that Turkey and Italy account for the largest share of the company’s exports, alongside other European markets including Spain, Germany, Poland, and Bulgaria, which are among the most highly competitive markets in the steel industry.
Hammam pointed out that the company’s strategy focuses on specialty steel used in precision industries such as automotive manufacturing, heavy equipment, and specialized engineering applications, giving Arcosteel a strong competitive edge compared with conventional steel products.
He also confirmed that the company has undergone a major transformation since its acquisition by El Ashry Steel Group in 2021, during which a comprehensive operational transformation plan was implemented to enhance production efficiency without laying off any employees, while bringing in new technical and managerial expertise.
He added that this plan has resulted in an increase in annual production capacity from 140,000 tonnes to 240,000 tonnes, achieved through improving equipment efficiency and production lines, as well as diversifying the product portfolio to meet the needs of both domestic and global markets.
On the sidelines of the German-Arab Chamber of Industry and Commerce conference, Hammam noted that Arcosteel’s participation in the Wire & Tube Duesseldorf 2026 international exhibition helped open new communication channels with customers. The company held numerous specialized technical discussions, which positively reflected on the expansion of its customer base in the European market.
He concluded by emphasizing that European markets are among the most stringent in terms of quality and technical inspection requirements; however, Arcosteel has successfully penetrated these markets thanks to the precision of its quality systems and its advanced testing laboratories capable of meeting the highest international standards.
