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Orascom Construction to Double Steel Fabrication Capacity

02/29/2008 - Orascom Construction Industries announces plans to construct a new state-of-the-art steel fabrication plant for its wholly owned subsidiary, National Steel Fabrication.

Orascom Construction Industries (OCI), Egypt, has announced plans to expand its investments in the industrial zone in Ain Sokhna with the construction of a new state-of-the-art steel fabrication plant to be commissioned during 2008.
 
Orascom Construction will carry out the investment through its wholly owned subsidiary, National Steel Fabrication (NSF). The company said that it has earmarked approximately EGP 450 million for the project.
 
The new facility will have a 500,000-m2 yard and an annual production capacity of 80,000 tonnes. It will be located in Ain Sokhna, in an industrial park that is managed on a concession basis by OCI subsidiary Suez Industrial Development Company (SIDC). It is expected that the new plant will create approximately 3000 new jobs.
 
The new plant raises Orascom Construction’s annual steel fabrication capacity to approximately 120,000 tonnes, including the capacity of existing plants in the industrial park and Algeria.
 
Orascom reported that National Steel Fabrication has also completed its acquisition of IBSF, which was formerly known as Nasr Boiler & Pressure Vessels Company. IBSF specializes in the design and manufacture of all types of boilers, pressure vessels, condensers and heat exchangers. In addition to the design and manufacture of these products, IBSF also offers engineering, procurement, installation and startup services. The acquisition was completed at total enterprise value of EGP 75 million (US$ 13.6 million).
 
 “Our steel fabrication plants provide a competitive edge for our Construction Group in the execution of turn-key industrial and infrastructure projects across the region,” commented OCI Chief Executive Officer, Nassef Sawiris, “especially in power, oil & gas and large-scale infrastructure.”
 
National Steel Fabrication currently provides steel fabrication services to clients in Egypt, Algeria, the United Arab Emirates, Saudi Arabia, Northern Iraq, Nigeria, Spain, the U.K., and Germany.