Cairo – Mubasher: Delta Steel Mill Company, a subsidiary of Metallurgical Industries Holding Co., plans to modernise its factories with a combined cost of EGP 700 million ($42.3 million), the company’s chairman Mahmoud El-Feky said.
Under the company’s plan, steel billet production capacity will be raised by 12 times to 500,000 tonnes a year, while casting output capacity will be increased by 10 times to 10,000 tonnes, according to a statement released by Egypt’s Ministry of Public Enterprise Sector.
The modernisation project also includes establishing a new infrastructure in full compliance with environmental standards and requirements as well as slashing energy consumption by about 40%.
The first phase of the project is scheduled to be complete in October after adding a line for producing 250,000 tonnes of billets, while the second phase is expected to be complete by June 2020 after adding a line for producing250 ,000 tonnes of castings.
Delta Steel is expected to turn into a profit of about EGP 150 million, compared to losses of EGP 50 million, thanks to the expansion project, minister of public enterprise sector, Hisham Tawfik, said.
