Egypt’s largest steel producer Ezz Steel has announced that its subsidiary Al-Ezz Dekheila Steel Company (EZDK) has purchased an 18 percent stake in Egyptian Steel Group for Management of Steel Plant Projects Company (Egyptian Steel) for a value of EGP 2.5 billion ($159.15 million), aiming to expand its presence in the local market and to take some benefits from the currently relatively favorable situation in overseas outlets.
Market sources believe this move will help Ezz Steel in its growth and expansion, though there are some questions regarding the company’s financial stability, taking into account that its debt is around EGP 34.5 billion.
Ezz Steel’s strategy for growth is based on constantly increasing capacities, either organically, or through investment in existing companies, as SteelOrbis previously reported.
The company has an annual flat and long production capacity of seven million mt.