Egypt’s Al Gioshy Steel announced on Thursday that it has completed the acquisition of Arabian Steel Industries, located in Ain Sokhna in the Suez Canal Economic Zone.

Al Gioshy Steel said in a statement that the new board of directors for Arabian Steel Industries is scheduled to be formed within days, headed by Tarek Al-Gioshy, owner of Al Gioshy Steel and a member of the Board of Directors of the Chamber of Metallurgical Industries.

The financial details of the transaction weren’t disclosed.

The statement said the annual production capacity of Arabian Steel Industries would be increased by 39 percent from 360,000 tonnes to 500,000 tonnes.

It said Arabian Steel Industries' facilities will be upgraded to meet international standards, and the company will benefit from Al Gioshy Steel Group's advanced materials testing laboratories.

The acquisition also includes a license to produce billet, allowing Al Gioshy Steel to expand production to supply local rebar rolling mills.

Egypt's growing urban development requires new rebar plants, according to Al-Gioshy. He said the company will fulfil both local demand and contribute to Egypt’s export target of $200 billion annually.

(Writing by Eman Hamed; Editing by Anoop Menon)

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