Egypt to establish 1st ship scrapping project in region

This national project serves the country's interests and offers a unique service in the region and the whole African continent.

It will involve recycling ships, building new ones, and performing repairs (planned and emergency) for up to 400-metre ships and a light displacement of up to 40,000 tons. 

The project, which spans two million square metres in the West Damietta Port, will substantially impact Egypt's economy.

Within five years of its launch, the project is expected to produce 1.5 million tons of scrap annually from ship recycling, covering 66 percent of the total scrap required for rebar production in the local market.

This will reduce Egypt's reliance on imported scrap and help save foreign currency.

The project will also create about 4,000 direct and indirect job opportunities.

Egypt produces approximately eight million tons of rebar annually, while licensed steel factories have a production capacity of 16 million tons.

However, due to a shortage of scrap in the local market, about 1.5 million tons are sourced locally, and around three million tons are imported.

The project will also involve bringing ships worldwide, recycling them, and converting them into scrap suitable for global trade, according to international standards.

During the MoU signing, Kamel El-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, highlighted that this project aligns with presidential directives to enhance cooperation with the private sector.

He explained that the initiative focuses on investing in raw materials for the critical iron and steel industry, aiming to reduce the industry’s reliance on importing solid scrap by utilizing the scrap produced from this project.

Furthermore, he highlighted that the recycled scrap iron will contribute to a sustainable ecosystem for producing green steel.

He added that the project also aims to establish the first ship recycling yard for large, medium, and small ships according to international standards, enabling it to engage with major shipping and container companies.