Arab FinanceA group of Qatari investors is discussing with an Egyptian investor the establishment of a new iron and steel factory with initial investments amounting to $100 million, and it is targeted to begin operation early next year, according to what was reported by Al Borsa newspaper.
The local investor is scheduled to provide the land and construction in exchange for a 51% stake in the project, while the Qatari side will be responsible for financing the purchase of production lines and raw materials, and will own a 49% non-controlling stake in the factory.
The new company also intends to direct about 80% of its production to the Arab, African and Turkish markets, with the remaining production allocated to the local market. The company, which is still under construction, plans to apply to the Industrial Development Authority to obtain a license to produce rebar and steel sectors during the first half of this year. . Once the license is obtained, the company will contract with the Italian company Danieli to purchase the production lines.
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