Egypt Suez Canal Authority signed a memorandum of understanding with Italian equipment supplier Danieli, building a steel plant in the Suez Canal Economic Zone.
According to the agreement signed on August 17th, the plant will be located at Ain Sokhna, whose steel rebar production will reach 1.2 million tons annual.
The steel plant is expected to begin operation from the end of this year, with an initial production capacity of 600,000 tonnes annual.
Suez Canal Authority said that in the second phase of investment, that is, after the first phase completion of seven months, the plant will increase the additional 600,000 tons of rebar production capacity, as well as supporting the smelting and casting equipment.
In early June, Egypt imposed provisional anti-dumping duties on rebar imported from China, Turkey and Ukraine. So since then, its domestic demand for steel rebar had become very strong.