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Egyptian Gazette
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Plant to produce 5m tonnes of pellets annually, decrease reliance on imports, offer 4,500 job opportunities

by Sarah Saad
May 4, 2025
in Business, Egypt
Plant to produce 5m tonnes of pellets annually, decrease reliance on imports, offer 4,500 job opportunities 1 - Egyptian Gazette
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The Egyptian Gazette  tours Suez Steel Company’s Rolling Mill 4

During a tour in the Suez Steel Company’s railway rails factory, on the sidelines of President Abdel Fattah El Sisi’s inauguration of the company’s 2nd phase, Rolling Mill 4 for the production of railway rails.

The tour included the factories that were previously inaugurated of project, focusing on the development of Rolling Mills 1 and 2, which produce of rebars, as well as Rolling Mill 3, producing steel coils. The latter was inaugurated in 2019, leading up to Rolling Mill 4, which is being carried out on two phases: reinforcing iron ore and iron substrates, and completing the pelletizing process.

During the tour in Rolling Mill 4, Chairman of the Suez Steel Company Eng. Mahmoud Fikry explained to The Egyptian Gazette that the railway rail factory is the first of its kind in Africa and the Middle East, in terms of technology and manufacturing quality.

The site of the project was chosen thanks to proximity to the Suez Port, which would facilitate local and foreign transportation and trade. It is also far enough from the residential areas in the governorate, Fikry added.

He also emphasised that the expansion of the Suez Steel Company was possible with support from major national infrastructure projects, and road networks, as well as the modernisation of electricity grids.

For his part, Company Vice Chairman and Managing Director, Rafik Dhou, noted that promoting industries is essential  for developing countries.

Dhou lauded President Abdel Fattah El Sisi’s vision to shift from using coal to gas in power plants. This has had a positive impact on economic feasibility, as well as reducing carbon emissions, amid the repercussions of climate change.

Plant to produce 5m tonnes of pellets annually, decrease reliance on imports, offer 4,500 job opportunities 3 - Egyptian Gazette

He also announced a future plan to establish a hydrogen-powered plant, using clean energy.

Dhou revealed the goal of manufacturing 5 million tonnes of iron pellets and raw iron ore annually, is to reduce reliance on imports and achieve international standards that enabling exports, thus contributing to reducing the trade deficit.

He also referred to co-operation with the El-Sewedy Academy, in establishing a technical school accredited by the Ministry of Education and Technical Education. Some 12 students from the school have achieved advanced rankings nationwide, he said.

Rolling Mill 4 started trial operation two months ago, he said.

Eng. Gabriel Samir, Director of Mechanical Maintenance and Facilities in the company, stated that a maintenance plan was developed in co-operation with the  German side. It includes daily, weekly, monthly, quarterly, and annual maintenance schedules to avoid breakdowns and emergency, with focus on preventative and predictive maintenance.

He pointed out that the factory is equipped with secure operating systems and “self-defense” sensors. Entry to equipment areas is permitted only with authorisation from the control room, and any breach of the system leads to an automatic shutdown of the factory.

Plant to produce 5m tonnes of pellets annually, decrease reliance on imports, offer 4,500 job opportunities 5 - Egyptian Gazette

Engineers and technicians were trained on 3D simulation models of the factory model in Germany, told The Egyptian Gazette.

Eng. Ahmed Ashraf, Public and Occupational Safety Engineer at Rolling Mill 4, explained that the plant features self-safety systems as well as automatic signals from the control rooms, operating with five fully automated electrical stations.

Director of the Pelletizing Plant Eng. Mahmoud Amin, explained that the plant processes iron ore to raise concentration to 69 per cent. 

It aims to produce 5 million tonnes annually, which will contribute to achieving 50 per cent self-sufficiency of the country’s consumption, while also providing 1,500 direct job opportunities and 3,000 indirect job opportunities.

According to the plant’s signage, implementation work began in February 2022 through several phases until April 2024.

Training work for implementation continued until the equipment arrived and the plant was installed in January 2025, and trial operation began two months later.

Pelletizing operations undergo rigorous testing, including the Compressive Strength Test (CCS). He noted that Rolling Mill 4 achieved iron tolerance of 347 CCS, which is higher than international standards that start at 250.

Plant to produce 5m tonnes of pellets annually, decrease reliance on imports, offer 4,500 job opportunities 7 - Egyptian Gazette

For his part, Senior Eng. Mohamed Abdullah explained that the pelletizing stage represents an intermediate process for preparing iron ore for the pressing, physical, and mechanical processing stages, enabling it to withstand temperatures of up to 1,200 degrees Celsius. The goal is to produce 5 million tonnes of pellets every year.

Plant to produce 5m tonnes of pellets annually, decrease reliance on imports, offer 4,500 job opportunities 9 - Egyptian Gazette
Plant to produce 5m tonnes of pellets annually, decrease reliance on imports, offer 4,500 job opportunities 11 - Egyptian Gazette
Tags: jobPelletsPlantRolling Mill 4Suez
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