Arab Steel reported that ESRS have signed EGP 1.8 billion contract with National Bank of Egypt & Banque Misr to fund the construction of DRI plant with capacity reaching 1.9 million tonne per year.

The plant shall be built in Ain Al Sukhnah near Suez, Egypt, where the company's plants are located. Production in the new plant is expected to start during Q3, 2011.

The capacity of the new unit is considered the largest for any single production unit worldwide. It's also the first time that HYL technology, in addition to enters the Egyptian steel industry as one of two most widespread methods to produce DRI.

The new unit in Ezzsteel shall ramp up the company's DRI capacity to 4.9 million tonne per year considering that the 3 existing units produced around 3 million tonne in 2009 according to company sources, which is the highest figure reached up till now.

According to the contract, the loan shall extend to 7 years including a 3 years grace period.

(Sourced from Arab Steel)