Ezz Steel, Egypt’s leading metallurgical company, has announced substantial investments aimed at deepening domestic integration and import substitution in the steel industry. New details of the company’s medium-term development strategy were revealed during the World Economic Forum in Davos.
This is reported by Finway
Focus on Vertical Integration and Innovative Technologies
The company plans to invest around 1 billion euros in expanding production capacities over the next 18 months. As noted by the chairman of the board, Ahmed Ezz, these funds will not be directed towards increasing the output of finished steel products. Instead, the primary focus will be on implementing direct iron reduction processes using natural gas, which will allow for deeper integration of the production chain within the country.
“The global economic model is undergoing structural changes, as the focus on export-oriented growth becomes increasingly less viable in the face of rising protectionism,” emphasized Ahmed Ezz.
Export Under Pressure and New Market Opportunities
Over the past year, Ezz Steel’s exports have decreased to approximately 1 billion US dollars per year, down from 1.7 billion dollars previously. The main reasons for this decline have been the tightening of customs barriers and tariffs in the United States and the European Union. Against this backdrop, the company prioritizes strengthening local production, import substitution, and focusing on domestic demand.
At the same time, the Egyptian steel market faces structural challenges. For instance, rebar consumption in the country decreased by 3.9% year-on-year in 2025, totaling 6.7 million tons, which led to a 7.2% decline in production volumes to 8.4 million tons.
According to experts, expanding activities in new market niches, substituting imported steel, and developing innovative uses for steel products can support local manufacturers and contribute to stabilizing the industry.