Egyptian steelmaker Ashry Steel plans to acquire domestic specialty steel manufacturer Arco Steel, according to local media. The company’s Chairman Ayman El Ashry said to local media that the process of the acquisition will formally start in August. Ashry is in talks with investors in Kuwaiti and Saudi Arabia, who could partner in the deal.
Arco Steel has an annual installed capacity to produce 140,000mt quality steel. The company supplies to the local market and exports to Arab and European countries. Arco Steel produces stainless steel, cutting steel, case hardening steel, spring steel, and quenching and tempering steel as per customer specifications.
While Ashry Steel is focused on manufacturing steel rebar, metal forming of various types and shapes and ERW Tubes. Ashry has an achievable annual capacity to produce 2mn mt steel and aims to acquire 18-22pc market share in the Egyptian steel industry.