Al Delta, Gemco sign EGP 300m contract for foundry project

Al Delta Steel Company, an Egyptian public business sector firm, has signed a contract with Gemco Cast Metal Technology, a Dutch company, to establish a cast iron and steel foundry with total investments of 30 million Egyptian pounds ($1.877 million).

The new foundry is with an annual production capacity of 10,000 tons representing ten times the current production.

Gemco was chosen for the engineering, procurement and construction (EPC) contract through a tender last October.

Delta Steel Mill Company, a subsidiary of Metallurgical Industries Holding Co., has encompassed a p plan to modernise Delta’s factories with total cost of  700 million pounds ($42.3 million).

The modernisation project also includes establishing a new infrastructure in full compliance with environmental standards and requirements as well as slashing energy consumption by about 40 percent.

Delta Steel is expected to turn into a profit of about 150 million pounds, compared to losses of 50 million pounds, thanks to the expansion project.