Major Investment in Seamless Steel ProductionAshry Steel Group has announced a landmark project to construct a seamless stainless steel pipe manufacturing facility with a total investment exceeding €600 million ($650 million). The development marks a pivotal moment for Egypt’s industrial sector, as it positions the country to become more self-reliant in stainless steel components and reduce heavy dependence on imports. Chairman Ayman El Ashry confirmed the plan, highlighting strong governmental support and formal accreditation for the venture.

Capacity & Timeline for LaunchThe new plant is designed to have an initial annual capacity of 250,000 metric tons of seamless stainless steel pipes. Production is expected to begin within the next 24 months. This ambitious timeline will begin with post-Eid Al Adha site visits, after which the company will proceed to finalize contracts for production lines and initiate ground-breaking work. The rapid deployment strategy signals Ashry Steel’s urgency in capturing regional demand.

Strategic Importance for Egypt’s EconomyThe seamless pipe facility is poised to play a crucial role in strengthening Egypt’s domestic industrial supply chain. It will significantly reduce the need for imported steel pipes, a key input in energy, petrochemical, water infrastructure, and construction sectors. By developing local capacity, the project supports import substitution and aligns with Egypt’s national objectives for economic diversification and industrial localization.

Boost for Downstream IndustriesChairman El Ashry noted that the new plant will offer substantial benefits to downstream industries such as oil & gas, desalination, and energy infrastructure. Seamless pipes are prized for their strength and resistance to pressure, corrosion, and high temperatures. With a domestic source now under development, related industries can expect cost savings, shorter lead times, and greater consistency in quality control.

Technology & Partnerships on the HorizonAshry Steel plans to integrate advanced European manufacturing technology into the plant. This includes high-precision extrusion and heat treatment systems that are essential for producing high-grade seamless steel products. The company is in active discussions with several global engineering firms and production line providers, with final selections expected after the upcoming site assessments. The factory will be built to comply with top-tier global standards.

Job Creation & Skilled Workforce DevelopmentThe factory is expected to generate hundreds of direct jobs and many more indirect opportunities through local contractors and supply chains. Ashry Steel also intends to establish partnerships with Egyptian technical institutes and universities to train a skilled workforce for the facility. The project could serve as a talent hub for metallurgical and mechanical engineering disciplines in the region.

Environmental & Energy ConsiderationsIn line with growing environmental concerns, the company has assured stakeholders that the facility will incorporate sustainable practices. Plans include energy-efficient furnaces, emission control systems, and recycling units for water and scrap metal. The plant aims to comply with global emission standards, reducing CO₂ output and adhering to Egypt’s green industrial goals.

Next Steps & Market Expansion PlansAshry Steel will begin on-site evaluations shortly after the Eid Al Adha holiday. The company is moving quickly to secure machinery procurement, labor contracts, and environmental clearances. Chairman El Ashry also revealed plans to explore export opportunities in Africa, Europe, and the Gulf region once the plant becomes operational. This strategic export orientation could elevate Egypt’s profile in the global stainless steel market.

Key Takeaways:

• Ashry Steel will invest over €600 million ($650 million) in a seamless pipe plant with 250,000 metric ton capacity.

• The factory will support downstream sectors, reduce import reliance, also create local employment.

• Production is expected to start within 24 months, using European technology and eco-friendly systems.