The growth of Egyptian Steel
Stepping into the steel industry in 2010, propelled by over $2 billion of investment, Egyptian Steel is growing to become a leading diversified manufacturer and stalwart of the recovering Egyptian economy. Backing up substantial capex with robust social, environmental and operational programmes, the company is looking forward to years of sustained growth and success. Since we spoke to CEO Ahmed Abou Hashima in the July 2015 issue, the company has undergone a number of structural changes and is now in the process of diversifying its offering to the domestic and international market.
Abou Hashima is proud of how far his company has come – and is optimistic about its place in developing the country, he says: “Steel is crucial for the economy. We have a shortage of 8 million housing units and infrastructure. The whole population lives on only 7 percent of the land. In order to develop Egypt, steel is vital for at least several decades. It’s a strategic industry that employs thousands of people.”
Operations are shared across a number of subsidiaries which consist of Egyptian Steel for Building Materials, National Port Said Steel (NPSS), and IIC for Steel Plants Management. Together, these divisions enable the company to provide a range of steel production capabilities to the market – supported by a number of technological innovations.
“When all four plants of Egyptian Steel are at full capacity we will be able to acquire a 20-25 percent market share in Egypt,” says Abou Hashima, “We’re also expanding into the cement industry with a production capacity of 2 million tons per year, and going into IPO is in our plan, although there’s no set time for it yet.
“We have already taken our first step into the cement industry by establishing the sister company Egyptian Cement, and in the future, after mainly operating in steel and cement we might look into diversifying into other building materials such as wood, ceramic, and glass. Our vision is to make the group a one-stop shop for all building materials.”