Egypt's largest steel producer EZZ Steel has denied media reports suggesting that the company is planning a capital increase to finance its direct reduced iron (DRI) project in Suez, underscoring that the project will continue to receive funds from banks.
Egyptian media reports claimed that the steelmaker was planning to increase its capital by 40 percent to EGP 1 billion ($149 million) to help cover the rising investment costs of the Suez DRI plant.
As SteelOrbis previously reported, in November 2012 Ezz Rolling Mills was awarded a new license for the construction of DRI modules and additional meltshop facilities at EZZ Steel's site in Sokhna-Suez.