The proposed complex aims to localize the iron industry and export its production to global markets, especially in Europe, the Italian company told the Egyptian cabinet during a meeting on Wednesday.

The project is expected to create 17,000 direct and indirect job opportunities, according to a cabinet statement released after the meeting.

It also aims to attract investors to establish a green hydrogen production plant, with investments valued at around $2-$3 billion.

The proposal, the cabinet added, includes setting up firms to manufacture sponge iron – a clean production input that relies on green hydrogen, seamless steel pipes, and flat steel, according to the statement.

Danieli has offered to establish an international training centre in Egypt to train engineers and technicians from around the world and cooperate with relevant authorities for developing Egyptian crude mines to augment the volume of the local component in steel products.

During Wednesday’s meeting, the cabinet requested to precisely define the needs of the European market to estimate the project’s volume of exports and ensure the importance of sponge iron as a production input.

Prime Minister Mostafa Madbouly has requested a final version of the proposal, after taking into account the aforementioned points, to be presented in a meeting to be held soon, according to the statement.

Having produced 9.8 million tons of steel in 2022, Egypt ranked Africa’s largest steel producer and the second largest in the Middle East and North Africa.

Since the start of 2023, steel production in the country has faced challenges due to the foreign currency shortage.