Egyptian steel producer Ezz Steel is considering a $780 million investment in Algeria as part of its strategy to expand beyond Egypt and strengthen its export-oriented growth model, according to media reports.
The project reflects the company’s efforts to diversify its production footprint and improve access to regional markets.
DRI plant to anchor new capacity
According to the Algerian Investment Promotion Agency, the investment involves the construction of a direct reduced iron plant with an annual production capacity of approximately 2.5 million mt.
The facility is expected to consume around 3.6 million mt of raw materials and generate an estimated $825 million in annual revenue. The project’s financing structure includes $155 million in equity and $625 million in loans, underlining the capital-intensive nature of DRI-based steel production investments.
Potential for integrated steel complex
Algerian authorities indicated that the project could evolve into a fully integrated steel complex, covering multiple stages of iron and steel production.
The development aligns with Algeria’s strategy to attract industrial investments through incentives, land allocation, and investor support mechanisms.
Export-driven strategy gains momentum
Ezz Steel is increasingly focusing on export markets, with nearly 70 percent of its output already shipped abroad and export revenues reaching $1.6 billion over the past two years. The company’s total production capacity is approaching 6.5 million mt and is expected to exceed 7 million mt in the near term.
If realized, the Algeria project could mark a turning point in regional steel industry strategies, with producers increasingly adopting multi-country production networks aligned with evolving trade flows and infrastructure development.