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Egyptian Steel plans two new factories by mid-2016

Egypt is planning to increase production capacity to 3.5mn tonnes and hopes to cash in on construction opportunities. (Image source: Wagaboodlemum/Flickr)

Egyptian Steel is planning to open two new factories by mid-2016, and raise its capacity to 3.5mn tonnes per year, states chairman Ahmed Abou Hashima

The company will launch a US$460mn facility in Beni Suef, 120 km near Cairo, and a factory in Ain Sukhna on the Red Sea by 2016. Egyptian Steel has already established manufacturing plants in Alexandria and Port Said.

Abou Hashima said, ?We are seeking to acquire 20-25 per cent of the market share after production begins in all factories. There is strong demand in the market and we expect that there will be growth.?

There are several prospects for a thriving steel business such as housing, construction and infrastructure, he added.

Egyptian Steel has a 10 per cent market share and produces 800,000 tonnes of steel per year. It aims to raise capacity to 3.5mn tonnes annually once new projects are completed.

In addition, Abou Hashima stated that the company was exploring a feasibility study for a fifth factory that would be powered by coal.