Egyptian steel Industry

The Egyptian steel industry emerged in the 1950’s.

The public authorities launched an industrialization plan based on large direct government investments. The industrialization encompassed many industries such as automotive, aluminum and agribusiness. Over 2000 new factories were built in Egypt within this period. Steel industry was of course at the heart of this industrialization phase, as it is considered to be an indicator of economic progress where steel plays a critical role in infrastructural and overall economic development. Major factories were built such as the iron and steel plant in Helwan.

Since then, investments in the Egyptian steel industry are permanently on the rise. Today, Egypt comprises major players of the MENA steel industry, as well as around 22 other steel plants totaling a capacity of 8 Million MT. Solb Misr is definitely proud to belong to this niche of major players thanks to its 2 Million MT integrated steel complex.

In parallel, between 2004 and 2010, steel consumption in Egypt soared from 3.4 to 8.5 million tons, owed to the country’s economic and population growth (around 2% per annum), as well as urbanization and its consequent positive effect on the construction sector. Egypt’s economy registered an average annual growth rate of 5.7% over that period, driven by both dynamic domestic activity and foreign direct investment.

Incontestably, construction is one of Egypt’s fastest-growing sectors. This growth, fueled by the ever-increasing youth demand for housing and by the government's large infrastructure projects, explains the high demand of many construction materials.

Unlike beliefs that the 2011 Egyptian revolution caused drastic deterioration of the local steel industry, the latter only caused development stagnation. In 2011 and 2012, Egypt finished steel use registered 7.3 million tons including 6 million tons of long products.

As for 2013 and onward, the construction industry is expected to continue its upward trend as a result of continued government and private business expenditure. Thus in 2013, the Egyptian steel consumption is expected to reach 7 million tons of long products and to increase by 5% by 2014.