Somasteel, a leading Moroccan rebar manufacturer, has launched a new steel mill as part of a large-scale investment program. The new facility is equipped with an electric arc furnace (EAF) and enables the company to independently produce raw materials for finished steel, significantly increasing its level of independence from imported supplies.
This is reported by Finway
Investments and Production Capabilities of the New Facility
The investment in the construction of the mill amounted to $83.4 million. Initially, when the mill was launched in May, its capacity allowed for the production of up to 300,000 tons of billets with dimensions of 130–180 mm per year. However, thanks to upgrades carried out in the fall, the production potential of the complex has been increased to 400,000 tons per year.
“This is an important step that allows the company to become self-sufficient in its raw material production, which will contribute to new progress in the finished steel segment. Somasteel plans to leverage this self-sufficiency to enter the wire rod market in the near future,” the statement said.
Development Strategy and Future Prospects
The launch of the new mill completes the cycle of value-added creation at the company—from scrap metal processing to the production of finished steel. This move aligns with Morocco’s national strategy to enhance industrial independence and stimulate the development of domestic production under the brand “Made in Morocco.”
Having its own steel mill allows Somasteel to minimize dependence on foreign raw materials and expand its product range. In particular, the company plans to enter the wire rod market soon, utilizing the advantages of the new production complex.