Egyptian re roller Elmarakby has ordered 350,000 tonnes per year capacity electric arc furnace from SMS Concast for an undisclosed fee to produce billet from late 2013 for use in the company's existing 240,000 tonne per year rebar mill in Giza of Egypt.

Mr Hassan Elmarakby deputy CEO of Elmarakby said that "The meltshop will be commissioned latest in December 2013. Scrap from the US and Europe will be used in the furnace while there is also a possibility to load the furnace 20% with scrap substitute."

He said that excess billet output will initially be sold on the open market before the company brings on line its second rolling mill for which it already has a production licence. The mills will be fed with 130 mm square billet produced by the meltshop. The main issue affecting production in Egypt is a lack of power supply.

Mr Elmarakby said that "The lack of availability and prices of billet means that in order to survive, re rollers need to integrate to create more added value. In future, I don't think any re rollers will survive anymore."

Mr Elmarakby believes the current uncertainty in Egypt's construction industry will blow over in 1 to 2 years. We've had a revolution, so it's normal to have problems afterwards. In 2013 or may be the year after we should see steel consumption booming again.

Source - Arab Steel

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