Egypt’s Ezz Steel eyes $780 million Algeria expansion to boost regional footprint

Ezz Steel, the flagship steelmaker linked to Egyptian industrialist Ahmed Ezz, is planning a $780 million expansion into Algeria, marking one of the largest cross-border industrial investments in North Africa’s steel sector.

The proposed project, centered on a direct reduced iron (DRI) plant, underscores how major manufacturers are repositioning production closer to export markets amid shifting global trade dynamics.

As demand rises across Africa and Europe, Ezz Steel is leveraging Algeria’s investment incentives and strategic location to strengthen exports, cut logistics costs, and expand its regional footprint.

Driving cross-border industrial strategy

With nearly 70% of its output already directed to export markets, Ezz Steel’s planned entry into Algeria underscores a transition from centralized manufacturing to a more distributed regional model. By establishing production within key markets, the company aims to optimize logistics, reduce export frictions, and enhance long-term competitiveness.

The $780 million project, according to Algerian Investment Promotion Agency, will be financed through a mix of $155 million in equity and $625 million in debt, highlighting the capital-intensive nature of large-scale steel production.

At full capacity, the facility is expected to produce 2.5 million tons annually, consume 3.6 million tons of raw materials, and generate up to $825 million in yearly revenue. Algerian authorities have indicated the project could evolve into a fully integrated steel complex, spanning multiple stages of iron and steel production.

Scaling output amid export growth

The expansion comes as Ezz Steel ramps up production capacity, with annual output nearing 6.5 million tons and projected to exceed 7 million tons within the next year. Over the past two years, the company has generated approximately $1.6 billion in export revenues, reinforcing its position as a leading supplier in regional and global markets.

Algeria, for its part, is intensifying efforts to attract industrial investment through incentives, land allocation frameworks, and investor-friendly policies, positioning itself as a competitive hub for heavy industry in North Africa.

Reshaping North Africa’s industrial map

Ezz Steel’s potential move reflects a broader transformation across the region, where countries are increasingly integrated into a connected manufacturing corridor rather than operating as isolated domestic markets. For the steel sector, this shift could lead to more distributed production networks, improving supply chain resilience and reducing dependence on single-market manufacturing bases.

If executed, the project would mark a pivotal step in the evolution of Egyptian industrial giants toward multi-country production strategies, while testing Algeria’s ability to convert investor interest into fully operational industrial hubs.

The development underscores a growing trend: industrial growth in North Africa is becoming more coordinated, export-oriented, and geographically diversified, opening new opportunities for investors, partners, and supply chain players.