Egypt’s Industrial Development Authority (IDA) under the Ministry of Commerce and Industry is offering six new licenses to establish green field projects or expand brownfield plants to increase local production of billets, sponge iron and iron pellets.
IDA head Mohamed Al-Zallat said in a statement that the licenses are split into three for billets – two with a production capacity of 1.1 million tonnes/year each, and one with a production capacity of 200,000 tonnes/year; a single license for sponge iron with a production capacity of 2.5 million tonnes/year, and two licenses for iron pellets with a production capacity of 8 million tonnes/year each.
To encourage greater integration in the production and value chains, companies would be offered discounts on the license value depending on the levels of integration demonstrated, the IDA head said.
He said the offer documents would be made available at the Authority’s headquarters from 7 November to 18 November 2021.
Egypt produces approximately eight million tonnes of rebar, while domestic consumption revolves around 7-7.2 million tonnes.