Reuters reported that Egypt's state owned Metallurgical Industries Holding Company is considering participating in EGP 5 billion project to produce steel rebars.

Mr Mahmoud Mohieldin investment minister of Egypt said that the project would help meet fast growing demand for construction materials in Egypt, especially from real estate development which is expanding despite the economic slowdown in other parts of the world.

Mr Mohieldo said that "Despite the financial crisis and its consequences, this sector has been able to grow at rates of between 14% and 15%. This is in addition to the increase in the annual demand for residential units, which is now 350,000 to 450,000 units."

Holding company officials said that EGP 630 million of investments would also be made in state owned aluminum producer Egyptalum to modernize some of its production lines. It expects to earn net income of 145 million in the fiscal year 2009 to 2010 ending June 30 down from EGP 435 million in 2008 to 2009.

(Sourced from Reuters)