New Saudi-Egyptian firm formed to build $1bn-steel complex in Suez Canal region

Egyptian Suez Canal Authority (SCA) signed Tuesday a partnership agreement with a Saudi organisation on forming a joint-stock company to establish iron and steel factory in Ain Sukhna.

SCA Chairman Mohab Mameesh stated that the new factory would be built on the land plot owned by the authority to operate with the capacity of 1.2 million tonnes of steel annually.

Mameesh clarified that the partnership agreement worth US$500 million while the contracted upon investments are estimated at US$1 billion.

The chairman added that the set-to-be-built plant is set to be the core for establishing a complex for iron and steel industries.

The newly-formed company is named Suez Canal for Iron and Steel, Mameesh noted.

He added that the partnership agreement comes among SCA policy to upgrade its affiliates and forming new partnerships with international firms and organisations to boost national income and provide more job opportunities for youth.

On other side, the Saudi organisation affirmed that the signed partnership is a beginning for a number of contracts that target establishing more industries in Egypt through Saudi-Egyptian cooperation between economic and industrial authorities from two states.