Egypt is advancing its cooperation with Chinese companies to support the growth in the North African steel industry, with a new investment. The Suez Canal Economic Zone (SCZONE) has announced that it has signed an agreement with Chinese iron producer Wu’an Xin Feng to construct an electric arc furnace plant to produce hot rolled coil with an investment of up to $297 million.
The new plant will be the second HRC plant in Egypt along with the existing one owned by local steel producer Ezz Steel. The parties aim to export 70 percent of the new plant’s production, while the plant is expected to create around 1,200 jobs.
In addition, in November last year, SCZONE signed $15.6 billion in agreements with Chinese investors for 11 manufacturing and green hydrogen projects, including building quays and handling areas, as SteelOrbis previously reported.
Meanwhile, Egypt’s cabinet of ministers also plans to invest $1 billion to build a flat steel complex with an annual production capacity of 1.8 million mt, as SteelOrbis previously reported.
