Ezz Steel said Tuesday that it has acquired a LE 2.2 billion loan for the construction of a facility in Suez, which represents 70 percent of total required financing, local news reported.
The loan from Banque Misr and National Bank of Egypt will be used to construct a facility to produce Direct Reduced Iron (DRI).
The factory, which will have a total production capacity of 1.85 mtpa, spread over 1 million square meters, will be completed by the end of 2011.
In its daily notes, CI Capital said the news is positive and “indicates that the company is making good on its previously-announced plans.
DRI production should enhance the company’s profit margins as it will replace the company’s imported billets, CI said.
