Ezz Steel, the leading steel producer in Egypt, continues to implement its import substitution strategy and deepen internal integration. New details regarding the company's medium-term expansion plans became known on the sidelines of the World Economic Forum in Davos, Metal Expert reports.
It is noted that the company intends to invest about 1 billion euros over the next 18 months to expand its production presence.
According to Ahmed Ezz, Chairman of the Board of Directors of Ezz Steel, the planned investments will not be aimed at increasing the output of finished steel products.
Instead, funds will be focused on deepening vertical integration, in particular through investments in direct iron reduction processes using natural gas.
According to the head of the company, the global economic model is undergoing structural changes, as the focus on export-oriented growth is becoming less viable in the face of increasing protectionism.
In particular, Ezz Steel's exports decreased to about $1 billion per year from $1.7 billion previously, mainly due to customs barriers and tariffs imposed by the United States and the EU. In this context, Ezz stressed the importance of strengthening local production, import substitution and greater reliance on domestic demand.
Such a strategic approach is also necessary to overcome the structural problems in the Egyptian market. For example, domestic rebar consumption decreased by 3.9% year–on-year to 6.7 million tons in 2025, which led to a decline in production (by 7.2% YoY, to 8.4 million tons).
Expansion into new market niches, substitution of imported steel, as well as the development of new steel product applications can support local steel producers.
