Arab Finance: Metallurgical Industries Holding Company, through its subsidiary Egyptalum, signed a partnership agreement with Trafigura Group to expand the production capacity of the aluminum complex in Naga Hammadi, with total investments of $900 million, according to a statement.

Prime Minister Mostafa Madbouly noted that the signing comes within the state’s objectives to deepen local manufacturing, reinforce the capabilities of strategic industries, and maximize the utilization of existing assets while increasing their returns and operational efficiency.

Madbouly added that Egypt seeks to boost revenues, improve profitability, expand into foreign markets, and develop internal processes, whether through scaling production capacity or modernizing the infrastructure.

These goals will be achieved through partnership with the private sector, alongside adherence to governance and sustainability standards, the prime minister affirmed.

For his part, Deputy Prime Minister for Economic Affairs Hussein Eissa said the project aims to establish and operate an integrated industrial complex within the existing site of Egyptalum in Naga Hammadi, with an additional production capacity equivalent to the company’s current production capacity of nearly 300,000 tons of aluminum ore annually.

This project represents a qualitative leap in overall production volume, nearly doubling current production capacity to reach approximately 600,000 tons annually, Eissa mentioned.

It also serves as a comprehensive model for attracting value-added foreign direct investment (FDI), opening new marketing channels for Egyptian products in international markets.

Mohamed El-Saadawy, Managing Director of Metallurgical Industries Holding, underlined that global demand has witnessed continuous growth over the past ten years, with an average annual growth rate of 1.3% in terms of quantity.

The market is expected to continue growing in the coming years at a compound annual growth rate (CAGR) of up to 2.1% in terms of quantity and 3.5% in terms of value. This is driven by rapid growth in sectors related to transportation, electric vehicles (EVs), packaging, and other industries.

Egyptalum’s CEO Mahmoud Agour stated that the total investment cost of the project is estimated at between $750 million and $900 million, adding that it is expected to further enhance the development in Upper Egypt.

Agour explained that the project’s structure is based on establishing a joint venture (JV) between the shareholders, which will undertake the implementation and operation process.

The project's financing combines self-financing with loans, with a portion of the expected funding from the partners, in addition to securing a financing package from international financial institutions and banks. EFG Hermes will serve as the financial advisor.