(MENAFN- Daily News Egypt) Minister of Trade and Industry, Ahmed Samir, recently convened with representatives from 137 international companies specializing in iron and steel manufacturing. The meeting took place at the headquarters of the Suez Steel Company, an affiliate of the larger Suez Steel Group. During the discussion, they explored investment opportunities within the Egyptian market and the potential for directing new investments into Egypt.
Samir emphasised that the iron and steel industry serves as a cornerstone of Egypt's economic strength. It plays a pivotal role in supporting infrastructure, construction, and manufacturing sectors. Notably, Egypt has risen to prominence as one of the leading steel producers in the Middle East and North Africa.
Last year, Egypt achieved a steel production of 9.8 million tonnes, solidifying its position as Africa's largest steel producer. This robust performance underscores the industry's current strength and its significant growth potential.
However, the sector faces challenges, including the impending implementation of the EU Carbon Border Adjustment Mechanism (CBAM) in 2026. CBAM aims to create a level playing field by imposing a carbon price on imported goods. Egypt must strategically navigate this shift toward decarbonization to maintain its competitive edge in exports.
To address these challenges, the Ministry of Trade and Industry remains committed to supporting iron and steel manufacturers in adopting cleaner production methods. Collaborating with industry pioneers, research institutions, and technology providers, they explore innovative solutions such as electric arc furnaces and green hydrogen. These efforts will mitigate the impact of CBAM and position Egypt as a sustainable steel producer on the global stage.
Despite the hurdles, export opportunities persist due to ongoing global infrastructure projects. Africa's economic growth also drives demand for high-quality steel. Egypt, with its production capacity of 9.8 million tonnes and skilled workforce, is well-positioned to capitalize on these opportunities. The government continues to prioritize industry development.
Recognizing the vital role of iron and steel producers in Egypt's economic success, the Ministry facilitates access to global markets. Streamlined export procedures, favourable trade agreements, and financing mechanisms empower Egyptian steel exporters. Additionally, investments in research and development, including green steel production and resource-efficient technologies, contribute to responsible industry practices.
The Suez Steel Company, an integrated complex, plays a crucial role in Egypt's steel production. Its facilities include a direct reduction plant, two iron-smelting plants, three rolling mills, an iron-forming plant, and auxiliary factories that complete the production process.
MENAFN05062024000153011029ID1108298585
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.