11 August 2015
Egypt's biggest steelmaker Ezz Steel
intends to launch new factory for producing direct-reduced iron (DRI) with investment worth EGP5 billion (US$638.4 million) next October, Investor Relations Manager Kamel Galal said Tuesday.
Galal told Amwal Al Ghad that the new factory's capacity is to reach 1.8 million tonnes annually. The preparations of the new factory have been completed by 99.5%.
The official stated that the new factory will provide around 1,000 new job opportunities, adding that the factory comes to complete company's plans to integrate all production lines with each others.
Galal noted that the company is to announce the new investment plans after opening the new factory. Ezz Steel is not currently negotiating with banking sector to get new loans, the manager asserted.
On other side, Ezz Steel's business results for 2014 showed that it has incurred losses estimated at 835.6 million Egyptian pounds opposed to profits worth 527.9 million Egyptian pounds 2013.
At the beginning of 2015, Ezz Steel has got a long-term loan worth 1.7 billion Egyptian pounds from the National Bank of Egypt (NBE) and Arab African International Banks (AAIB).
Ezz Steel's market share in the local markets is estimated at 57%. The company targets increasing its market share by pumping more new investments.