The Industrial Development Authority (IDA), affiliated to the Ministry of Trade and Industry, announced Wednesday the issuance of the booklet of requirements and controls for the establishment of six projects to produce billet, sponge iron, and iron pellets, or expand existing ones locally, in preparation for obtaining a production licence.
Chairperson of IDA Mohamed Al-Zalat said that the iron and steel industry is one of the pivotal strategic industries and a pillar of the national economy. It is an intermediate industry for many other industries, in addition to majorly contributing to the national income and the balance of payments. This industry alone provides more than 30,000 direct job opportunities, in addition to thousands of indirect job opportunities.
He added that the iron industry goes through several stages, starting with the iron pellets, then sponge iron, all the way to billet boxes/steel plates, and even the manufacture of rebar.
He said that the manufacturing process in Egypt is incomplete in the stages of iron pellets and sponge iron, so the authority decided to issue new licences for the production of iron and steel products (billet, sponge iron, iron pellets) or expand existing ones.
He added that this step comes within the framework of the strategy of the Ministry of Trade and Industry to meet the needs of the local market for iron and steel products, increase production to bridge the import gap, and provide the necessary requirements for expansions of development plans to meet the needs of the growing market to keep up with the urban development to take place during the upcoming stages.
He pointed out that the local offering includes six production licences for various iron and steel products, with a total production capacity of 1.3 million tonnes of billet, 2.5 million tons of sponge iron, and 16 million tonnes of iron pellets.
He said that these licenses are divided as follows: three licences for billet production to be locally offered (two licences with a production capacity of 1.1 million tonnes per year each, and a licence with a production capacity of 200,000 tonnes per year), and a licence for the production of sponge iron with a production capacity of 2.5 million tonnes per year, as well as two licences for the production of iron pellets, each with a production capacity of 8 million tonnes per year.
He stated that the companies that add production stages that increase the integration rates will be granted discounts on the licence, in order to encourage more integration in the different production stages and increase the rates of local manufacturing.
Al-Zalat also explained that the requirements and controls booklets will be available at the authority’s headquarters from 7 to 18 November.
