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Egypt Plans to build new 12 Steel Mill

The Egyptian Ministry of Trade and Industry recently announced it will offer Twelve (12) new licenses to build steel mills to meet rapidly increasing demand and expected shortage by 2017. The deadlines for launch these factories licenses will be determined by the end of this month, based on the recommendations to be submitted to the Minister. According to the Egyptian Industrial Development Authority (IDA) that the new mills are vital to the adequate supply of steel which is expected to reach to 5 Million tons by 2017 in case if the growth rate continue to rise at 7% , and rising to 6 millions tons if the growth rate reach 8% In fact, the consumption of steel in Egypt has been steadily rising over the past four years, as massive infrastructural, housing and tourism projects were implemented to capitalize on the strong performance of the Egyptian economy and the subsequent increase in the population purchasing power. In 2004, total consumption amounted to only 3.4mn tons and it started to gradually increase and in 2007, total consumption reached 5.2mn tons, then the consumption grew at 15.3% Y-o-Y in 2008. Egypt’s per capita consumption of steel in 2007 was about 69.2 kg, which was above the African average of 35.8 kg. The reason for this large discrepancy could be attributed to the large population that Egypt poses, 81.7mn, and reflects the potential of the Egyptian market, as there is still a huge appetite for growth and development. The Middle East steel industry is booming and will continue to offer a wealth of opportunities for steel & metal players. The estimated US$ 1 trillion worth of projects, underway or planned, are leading to consistently high demand projections The resurgent metal and steel industries of the MENA region means that next year’s Metal&Steel Exhibition (February 26 -28, 2011, Egypt), is well placed to once again provide the perfect platform for business across all aspects of the Middle East’s metal, iron and steel industries.

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