The Egyptian Gazette

Egypt shortlists Tatas, Essar for $3 bn steel unit

25 August 2007

MUMBAI: India’s largest steel producer Tata Steel and the Ruias’ Essar Steel Holdings (ESHL), a unit of Essar Global, have been shortlisted by the Egyptian government to build a proposed $3-billion steel and billet plant in the north African country to meet growing demand in the West Asian region.

The two Indian companies are among seven global firms who have made it to the final list from the initial 24 bidders. “The seven names were disclosed by the Egyptian government last week. The winner of the bid will be announced by October,” a source close to the development told ET. Others in the fray include Ezz Steel, Suez Group and Egyptian Iron & Steel Company.

The development comes three months after reports from Egypt said the two Indian companies have shown interest to set up steel projects in the country. The project includes two steel plants, each with a capacity of 2MT. The two billet plants, intermediate steel products, will have a capacity of 1MT each.

An Essar Steel Holdings spokesperson said, “As a group we keep looking at growth opportunities in sectors that we are in. However, it is not our policy to comment on any specific proposal.” Essar Global also plans to invest almost $3 billion in setting up a refinery in Egypt.

The Egyptian Government has recently unveiled plans to set up new cement and steel plants apparently to curb run-away prices on the local market.

The latest move to build steel plants in Egypt is part of the two companies’ earlier plans to invest in the gas-rich West Asian region. Both, Tata Steel and Essar, have already announced plans to build steel plants in Iran.