In a bid to expand its global footprint, El Marakby Steel Company, a leading player in Egypt's steel industry, sets its sights on a substantial increase in exports for the year 2024. With a goal to reach $110 million in export revenues, the company's CEO, Hassan El Marakby, outlined ambitious plans to bolster their presence in international markets.
Last year, the company’s exports accounted for about 40% of its total annual production, a significant leap from the previous year’s 25%. The strategic focus on exports emerged in response to the currency shortage crisis, which compelled El Marakby Steel to explore new markets. The company aims to sustain annual growth between 5% and 10% in both domestic and export business volume.
El Marakby Steel produces rebar and wire rods, with a particular emphasis on wire rod for export due to streamlined customs approvals and fewer complications compared to rebar. The company has successfully penetrated six new markets, including the Netherlands, Germany, Bulgaria, and Belgium. Additionally, it tailored special shipments to meet American market specifications, further expanding its global footprint1.
The wire rod products manufactured by El Marakby Steel are distributed across various regions: Europe, North Africa (including Tunisia and Algeria), the Gulf (notably Saudi Arabia), and South America (with Brazil as a key market). The company’s strategic vision includes injecting new investments to enhance technical specifications for existing products and introducing new offerings in sectors such as engineering.
El Marakby remains cautiously optimistic about production this year, anticipating increased capacities as raw material availability improves. The resolution of the hard currency crisis and the liberalization of exchange rates in Egypt’s official banking sector are expected to bolster factories, many of which operated at only 40% capacity last year. However, El Marakby acknowledges potential challenges, including rising interest rates and financial tightening affecting new projects.
El Marakby also highlighted the pivotal role of forthcoming executive regulations for Egypt's construction reconciliation law, anticipating a surge in demand from the construction segment. Recognizing the segment's significant contribution to annual demand, he emphasized the need for sustained efforts to bolster actual production capacity and reduce manufacturing costs, thereby ensuring long-term viability and competitiveness.
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