Egypt supports decarbonization of the steel industry

Egypt supports the decarbonization of the steel industry, as investments in the green modernization of steelmaking facilities will help maintain the competitive advantage of domestic producers in export markets. This was discussed at a meeting between Egyptian Minister of Trade and Industry Ahmed Samir and representatives of 137 international steel companies, Kallanish reports.

Samir emphasized the importance of the steel industry for the Egyptian economy and support for infrastructure, construction and manufacturing. In 2023, Egyptian steelmakers produced 9.8 million tons of steel, strengthening their position in the African market. The Egyptian government continues to prioritize the development of the steel industry and is considering increasing exports through ongoing global infrastructure projects. Africa’s economic growth is also driving demand for high-quality steel.

At the same time, according to the minister, there are challenges for local steelmakers, including the introduction of the CBAM mechanism in the European Union.«Egypt needs to make a transition to low-carbon production to maintain its competitive advantage in exports. The Ministry of Trade and Industry continues to support steelmakers in implementing cleaner production methods. In cooperation with leading companies, research centers and technology providers, we are exploring innovative solutions, including electric arc furnaces and clean hydrogen. These efforts will mitigate the impact of CBAM and position Egypt as a sustainable producer on the global stage,” he said.

As GMK Center repported earlier, the Egyptian government is studying the proposal of the Italian Danieli Group to create an integrated industrial metallurgical complex worth $4 billion. The project is aimed at localizing the local steel industry through the use of international experience and exporting steel products to global markets, especially European ones.

In September 2023, it was reported that Egypt plans to build an integrated flat-rolled steel mill. Investments in the project are estimated at $1 billion. The plant’s capacity will be about 1.8 million tons of flat products per year. The products will be sold primarily to export markets, while also serving the domestic market.