ezzsteel wishes to make clear the following:
• In September 2011, immediately following the Court of First
Instance's decision to annul the licenses previously awarded
to ezzsteel and three other Egyptian steel producers in 2008
and relating to the construction of Direct Reduced Iron (DRI)
modules and additional meltshop facilities in Sokhna-Suez,
ezzsteel stopped all construction at the site until the terms
and conditions for the awarding of licenses are agreed with
the authorities. As a consequence, since that time, there has
been no need for further payments - hence why existing bank
facilities that relate to the DRI project remain undrawn.
• Lending banks have confirmed that the loan agreement
continues to be in effect and that the funds are available
for the project once the licence issue is resolved.
• The authorities have confirmed their intention to replace
the annulled licences and ezzsteel is still in negotiations
in that respect.
• The licenses that have been annulled do not relate to any
of ezzsteel's current production, but only to future
projects.
• ezzsteel's production facilities continue to operate
normally.
Ezzsteel | Tel | Mobile |
Kamel Galal | + 20 2 3762 2144 | + 20 10 539 5499 |
Nick Bastin + 44 20 7307 5330 + 44 7931 500 066
About ezzsteel
ezzsteel (formerly: Al Ezz Steel Rebars) is the largest
independent steel producer in the Middle East and North
Africa, and the Egyptian market leader, with a total actual
capacity of 5.8 million tonnes of finished steel.
In 2011, the Company produced 3.6 million tonnes of long
products (typically used in construction) and 1 million
tonnes of flat products (typically used in consumer /
industrial goods). ezzsteel's customer base is
geographically diversified, with flat products mainly
directed to export markets, whereas long products are sold in
the domestic market. More than 50 per cent of its plants are
less than 10 years old, using the latest in modern steel
making technology.
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