Egypt Expands Steel Industry with Major Investments

Egypt is making significant strides to enhance its steel industry through two large-scale investment projects. On May 1, 2025, President Abdel Fattah Al-Sisi inaugurated the second phase of Suez Steel’s production complex, according to The Egyptian Gazette. The expansion includes a concentrator, a pelletizing plant, and Egypt’s first facility dedicated to producing heavy steel sections, rails, and ties.

The pelletizing plant, developed with Finnish Metso technology, is capable of producing 5 million tons of iron ore pellets annually. Meanwhile, the new heavy section plant will add 800,000 tons of steel production per year. These additions are expected to reduce reliance on steel imports, increase domestic value-added production, and boost Egypt’s competitiveness in global markets.

In parallel, China’s Xinfeng Group has begun constructing a massive industrial park within the Suez Canal Economic Zone in Ain Sokhna, Kallanish reports. The $1.65 billion project spans 3.75 million square meters. The first phase will feature four manufacturing units focused on auto parts, home appliances, and hot-rolled steel.

The second phase will add five more workshops, producing aluminum-magnesium automotive parts, steel structures, and cold-rolled steel. At the heart of the development is Xinfeng Steel’s integrated plant, designed to produce 2 million tons of hot-rolled coils annually.

These projects will significantly strengthen Egypt’s industrial capabilities and position the country as a competitive player in the global steel market.

The Egyptian government is also committed to decarbonizing the steel sector. Investments in environmentally sustainable steel production aim to ensure long-term competitiveness in international markets. In 2023, Egypt produced 9.8 million tons of steel, solidifying its role as a key supplier in Africa. The government continues to support the industry's growth, with an eye toward increasing exports through global infrastructure initiatives.