Ezz Plans Capital Increase for Further Expansion

Ezz Steel, Egypt's largest steel producer by sales, announced on Thursday it would raise its capital as part of an expansion plan. The company said it would raise its capital by 1.82 billion Egyptian pounds ($343 million) by selling 364,776,388 new shares at a par value of five pounds. Shareholders can buy two new shares for every one held.

The company said it was seeking regulatory approval and would announce the start of the sale in Egyptian newspapers. Ezz is seeking to boost steel production to its capacity of 5.3 million tonnes by the end of 2009. Production was about 4.8 million tonnes in 2007.

The company signed a deal last year to invest $750 million in a steel plant in Algeria, its first outside Egypt. Ezz Steal has over 65 percent of the Egyptian market in terms of sales.