The complex will have a production capacity of 1.8 million tons and will start production within 24 months of receiving permits.
It will be built over two phases in partnership between the Egyptian government and an unnamed international company.
The project would create 6,500 jobs, including 2,000 direct and 4,500 indirect jobs.
The industrial complex will produce different types of rebar and wire rods at dimensions new to the Egyptian market, a competitive advantage.
According to Cabinet Spokesperson Nader Saad, the steel complex’s products will be used in building bridges and steel structures and manufacturing high-speed trains, subways, monorails, electric cars, transformers, and ships.
Egypt’s steel production has slowed since the beginning of 2023 due to foreign currency shortage and a decline in local demand.
In 2022, Egypt produced 9.8 million tons of steel, making it the largest steel producer in Africa and the second largest in the Middle East and North Africa (MENA) region, according to a report by Fitch Solutions in April 2023.
In 2020 and 2021, Egypt produced 10.3 and 8.2 million tons, respectively, according to data from the World Steel Association.