China’s Sinoma to build $100 mln steel plant in Egypt

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China’s state-run Sinoma International Engineering Co. plans to build a $100 million steel plant in Egypt, its vice president Gu Chao said on Thursday.

The anticipated plant is expected to produce around 2 million tonnes of iron and steel a year, Chao said during his meeting with Egyptian Minister of Investment Sahar Nasr in Cairo.

The Egyptian steel sector is the second largest steel market in the Middle East and North Africa region in terms of production and the third largest in terms of consumption.

The Egyptian steel industry represents one of the cornerstones of Egypt’s economic growth and development, due to its linkages to almost all other industries that stimulate economic expansion such as construction, housing, infrastructure, consumer goods and automotive. All these industries rely heavily on steel industry and so the importance and development of the steel sector is imperative for the progress of the Egyptian economy in general.