Annual profits for local steel manufacturer Ezz Steel fell from LE1.2 billion in 2008 to LE88 million in 2009 as a result of a year-long closure of one of the company’s steel-plate factories. The losses have also been attributed to declining tin sales, waning retail prices for steel rebars and abundant supplies of less expensive imported steel on the local market.
"We had to buy raw materials at high prices and then sell it at slightly above cost," said Ezz sales director Samir Naman. "Our only consolation was that overall demand rose by 40 percent last year, allowing us to realize unprecedented production volumes."
"In light of the fact that most steel producers around the world recorded losses, we should be proud to have generated some profit," he added, going on to predict improved market conditions this year.
Last year, Ezz Steel suffered a 42.4-percent decline in total sales.
Translated from the Arabic Edition.
