Egyptian Ferroalloys Company reported EGP600 million in net profit on EGP2.597 billion in revenue for FY 2025/26, as the state-owned industrial producer evaluated six international bids for a fifth furnace estimated to cost $60 million, potentially expanding capacity, exports and domestic alloy production.
The results, disclosed by Chief Executive Eid Mehallel at the company’s general assembly and reported on October 4, reflect continued profitability despite the temporary suspension of a major production furnace for refurbishment.
The company, a subsidiary of Egypt’s Metallurgical Industries Holding Company, recorded EGP747 million in gross profit and EGP771 million in pre-tax profit, equivalent to gross and net profit margins of approximately 28.8% and 23.1%, respectively, according to figures reported by Youm7.
$60mn Furnace Expansion Under Evaluation
Egyptian Ferroalloys has received six technical proposals from companies in India, South Korea, China and Russia for construction of its fifth furnace. The bids remain under evaluation, with no contractor selection or final investment decision announced.
Mehallel estimated the project at approximately $60 million in an August interview with Youm7, indicating that financing would combine contributions from the holding company and bank borrowing, with the funding proportions still under discussion.
According to an August report by Power News, the new furnace could add approximately 15,000 tonnes of annual ferrosilicon capacity, potentially increasing total capacity from around 50,000 to 65,000 tonnes, a 30% expansion. The additional capacity remains a project target rather than a committed production increase.
EGP216mn Furnace Rehabilitation Programme
The company completed an EGP116 million overhaul of its fourth furnace, restarting operations in February 2026. The furnace represents approximately one-quarter of existing plant capacity.
The refurbishment, undertaken partly to address safety risks from deteriorating refractory linings, is designed to extend the furnace’s operational life by approximately 15 years and reduce unplanned shutdowns.
A further EGP100 million overhaul of the second furnace is planned for FY 2026/27. Together, the completed and proposed works represent EGP216 million in asset rehabilitation, intended to sustain output while improving operational reliability.
Exports Generate Up to $40mn Annually
Egyptian Ferroalloys operates with annual production capacity of approximately 50,000 tonnes, directing around 70% of output to international markets and the remainder to domestic steelmakers and foundries.
Mehallel previously reported annual export earnings of approximately $35 million–$40 million, against foreign-currency expenditure of $15 million–$20 million on imported production inputs. These figures indicate a positive merchandise trade contribution before accounting for other foreign-currency costs.
The company’s export destinations include Japan, European markets, India, the UAE, Mexico, Jordan and Taiwan.
It has also begun exporting ferro silicon magnesium alloys, extending production towards higher-value materials used in foundries and specialised metal applications.
Management separately reported silica fume sales of EGP304 million and 1,936 tonnes, although the published product-level sales figures require further clarification.
The company is examining manganese-alloy production through either a new furnace or conversion of an existing unit. Mehallel estimates domestic manganese-alloy demand at approximately 120,000 tonnes, presenting an opportunity to reduce imports and strengthen local steel supply chains.
Potential EGX Listing adds Financing Dimension
Alongside industrial expansion, Egyptian Ferroalloys is preparing for a potential Egyptian Exchange listing.
In his August interview, Mehallel said preliminary listing arrangements and share valuation work were progressing, alongside preparations involving an investment bank and legal advisers. No definitive offering timetable, valuation or transaction structure has been announced.
A successful offering could broaden capital-market participation in the business, although the amount of new financing raised would depend on whether any eventual transaction includes newly issued shares rather than solely the sale of existing holdings.
Investment Outlook
Egyptian Ferroalloys enters its next investment cycle with established profitability, international customers and a substantial export base. Its proposed fifth furnace could expand annual capacity by approximately 30%, while manganese-alloy production offers a route into import substitution and higher-value industrial manufacturing.
The commercial outcome will depend on securing competitive financing, controlling electricity and imported input costs, completing furnace investments and converting additional capacity into profitable sales.
For Egypt, the larger opportunity is to turn an established ferroalloys exporter into a stronger industrial supplier capable of generating foreign currency, replacing imported inputs and supporting domestic steel production. The company’s profitability provides a foundation; execution of the $60 million expansion will determine the scale of its next contribution to manufacturing and exports.
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