New steel production quotas to be announced Wednesday

The Industrial Development Authority (IDA) on Wednesday will set production quotas for steel sponge and foundation steel for the four companies in Egypt that have already obtained production licenses, IDA President Amr Assal said on Tuesday.

Minya's Egyptian Steel, Al-Marakby Steel in 6 October City, Port Said Steel and Assiut's National Steel have all obtained licenses to produce a combined total of two million tons of foundation steel and one million tons of steel billets–which together are projected to realize some LE2 billion in sales.

Meanwhile, several firms working in various steel feeder industries are competing to provide these steel companies with the technical support needed to operate their production lines.

“We're competing with seven other companies to supply Egyptian Steel with their requirements,” said Sami Mahmoud, operations manager at Italian company Danieli.

Sources close to Egyptian Steel, owned by Ahmed Abu Hashima along with other investors, said the company would choose its official supplier on 24 January and would begin negotiating loans with local banks in March with a view to obtaining partial financing.

Indian company Arcelormittal, for its part, is applying for the extension of its license–for which it paid LE340 million–that it obtained in 2008. The company has not yet reached an agreement with the ministries of electricity and petroleum regarding its energy needs for the operation of its factory in Ain Sokhna.

Translated from the Arabic Edition.

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