Essar plans $590 million steel plant in Egypt
By Our Corporate Bureau | 14 May 2007
Essar Global is considering building a steel plant in Egypt at an investment of $590 million. Steel demand in the Middle East is forecast to grow by 9.1 per cent this year and a further 8.4 per cent in 2008, bringing the region's overall demand in 2008 to 43.6 million tonnes.
Egypt is the Arab world's most populous country. From an importer of 2 million tonnes of steel per year less than a decade ago, Egyptian government data showed last year that the country produced 4.3 million tonnes and exported 900,000 tonnes.
Even Tata Steel Ltd, the largest Indian steel maker, is examining the possibility of building a steel plant in Egypt at an estimated cost of up to $900 million. Tata Steel's proposed plant will be its second venture in Africa after its ferrochrome unit in South Africa, currently under construction.
The International Iron & Steel Institute (IISI) said Egypt's crude steel output stood at 6 million tonnes in 2006.
The Essar Group has also announced plans to set up three steel plants in the Middle East, including a joint venture to build a 1.5 million tonnes a year plant in Iran.
The Mumbai-based diversified Essar Group, promoted by the Ruia brothers, Shashi and Ravi, has a presence in steel, telecommunications, oil and refining and construction.
