A group of German and local investors is planning to build a direct reduction iron (DRI) plant in the new Suez industrial zone. The venture - Egyptian Integrated Steel Industries- has signed a memorandum of understanding with Suez Industrial Development Company (SIDC) for the purchase of 1 million square metres of land for the plant, and is evaluating bids from two European companies for the supply of equipment.
The plant will have a capacity to produce 1 million tonnes a year (t/y) of steel billets. Plans call for 60 per cent of its output to be exported. The bidders for the equipment supply contract are Ferrostaalof Germany, offering the DRI process of Mexico's HYL, and Italy's Danieli & Company, offering its own technology. The bidders have been asked to submit offtake proposals, project sources say.
SIDC, an affiliate of the local Orascom Construction Industries, holds 10.6 million square metres of industrial land close to the new Sokhna port. Installations already built in the SIDC area include a fertiliser plant. In one of the neighbouring industrial areas, Ezz Flat Steelis gearing up to start production at a new flat products mill (MEED 15:2:02).