Egypt Independent

Five Egyptian, Arab companies to apply for steel production permits



Five Egyptian and Arab companies, including local giant Ezz Steel, obtained technical qualification applications on Monday, allowing them to compete for new production permits for construction steel and billets from the Industrial Development Authority (IDA).

On Sunday, the IDA offered contractual terms for new production permits for construction steel and billets. The permit, offered for LE180 million, allows for the production of two million tons of construction steel and one million tons of steel billets.

According to IDA chief Amr Assal, investors will be required to provide their companies' production capacities and natural gas requirements–at a maximum of 300 cubic meters of gas–for steel production.

In the case that no other companies apply for permits, Assal said, additional amounts of natural gas can be made available with permission from the IDA. Those companies that receive permits will be required to establish power stations at their own expense or pay the equivalent amount to power stations chosen by the Ministry of Electricity if the station agrees to supply the company in question with electricity.

The period for filing technical qualification applications with the IDA will end on 25 November.

Translated from the Arabic Edition.