It is reported that Egypt's largest steel producer Ezz Steel is investing $475 million to set up a new billet production line and a direct reduced iron (DRI) plant.
As per media reports citing statements by the company's head of investor relations Kamel Gamal, the firm will invest $75 million in a new billet production line to be located at its flat steel plant in Suez, east of Cairo, and $400 million in a new facility to make DRI, also to be located in Suez.
Accordingly, the new billet line is set to produce 1.2 million mt of billet per year and will start up in the first quarter of 2010, while the DRI plant's annual capacity is planned to be 1.8 million mt and is set to start operations in the second half of 2011.
Ezz Steel has stated that billet production will increase the flexibility of its flat steel plant in Suez as whenever demand for flat steel is down they will be able to continue its operations at the flat steel plant.
The flat steel plant in question has been shut since November due to declining demand for flat steel.
As SteelOrbis reported last week, Ezz Steel announced an 89 percent drop to EGP 101 million ($18.26 million) in its net profit during the first half of 2009 but said local demand remained strong.