REG - EZZ Steel Company - Statement re Investments

Ezz Steel Co SAEAnnouncement

08/11/2021 14:10

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RNS Number : 6902R  EZZ Steel Company - S.A.E.  08 November 2021

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.

Investor Relations

 

 

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