Last checked at 8 Nov 2021 14:09
EZZ Steel Company - S.A.E.
Cairo, 7 November 2021 - Ezz Steel (EGX: ESRS; London Stock Exchange: AEZD),
In response to inquiries received from the Egyptian Stock Exchange regarding circulated news of Ezz Steel's intention to acquire a stake in an existing Egyptian steel producer, Ezz Steel clarifies the following:
In the last 20 years, global steel production has increased by 120%, from 850 million tons per year in 2000 to 1.9 billion tons in 2020. During the same period, the production output of the world's 20 largest steel producers increased by 170%, from 269 million tons in 2000 to 724 million tons in 2020. In turn, as the largest steel producer in Egypt and the Middle East, Ezz Steel continually strives for regional and international presence and competition in a market that is constantly growing.
Ezz Steel's strategy emphasizes constant growth, which is essential for maintaining competitiveness locally and internationally, and to ward off the risks of relative contraction. As a result of this strategy, in 2021 the company succeeded in becoming the first Egyptian company - since Egypt entered the era of modern industrialisation nearly 100 years ago - whose exports exceeded USD 1 billion in the first nine months.
The company's strategy for growth is based on constantly increasing capacities, either organically, or through investment in existing companies.
- Regarding the company's internal investments, Ezz Steel is currently executing a project that is near completion, aimed at increasing its production capacity of molten steel. This therefore ensures continuation of production and export of flat steel.
- Regarding investment in existing companies, in response to published and circulated news, once the responsible authorities in Ezz Steel, and in all related parties, make an investment decision, the company will disclose this in due course in accordance with relevant procedures. Needless to say, that this can only take place after financial and legal due diligence of the target investment. Furthermore, the governing conditions for making such investment include evaluating the quality and modernity of the assets and technologies used, the integrity and efficiency of its organizational structure, and the expertise of its human resources.
In all cases, Ezz Steel ascertains that it continuously applies - through its specialized legal and commercial departments - the highest level of compliance with the provisions of competition protection laws.
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