Egypt moves forward with up to $900M aluminum expansion in Nagaa Hammadi

CAIRO - 6 May 2026: The Holding Company for Metallurgical Industries, through its subsidiary Egyptalum, has entered into a strategic partnership with global commodities trader Trafigura to expand the Nagaa Hammadi aluminum complex in Upper Egypt, with planned investments ranging between $750 million and $900 million.

Hussein Eissa, Deputy Prime Minister for Economic Affairs, said the project involves the development and operation of a fully integrated industrial complex within Egyptalum’s current facilities in Nagaa Hammadi. The expansion is expected to add nearly 300,000 tons of annual aluminum production capacity, matching the company’s existing output.

Once completed, the project is set to almost double Egyptalum’s total production capacity to nearly 600,000 tons annually, while improving operational performance by leveraging the company’s existing infrastructure and decades of industrial expertise.

Mahmoud Agour, Managing Director of Egyptalum, said the project will be executed through a newly established joint venture that will oversee both construction and operations. He noted that the financing structure will combine shareholder equity with debt financing arranged through international banks and financial institutions.

According to Agour, the project has attracted strong interest from lenders due to its long-term economic viability and expected stable returns. Trafigura is also expected to support financing efforts by facilitating access to diversified funding sources under competitive terms, with EFG Hermes serving as financial advisor.

He added that the project’s structure is designed to ensure stable supply and marketing operations through long-term agreements. Under these arrangements, the foreign partner will secure key raw materials, particularly alumina, covering the plant’s operational requirements and reducing exposure to supply disruptions and market fluctuations.

Production will also be marketed through long-term contracts aimed at generating stable cash flows and supporting the project’s financing commitments.

Agour explained that the expansion will be implemented under a fixed-price EPC turnkey model to minimize risks related to delays and cost overruns, while ensuring compliance with project timelines and technical standards. The project will rely on globally recognized technology providers selected according to international specifications.

He also highlighted that establishing the project within the existing Nagaa Hammadi complex represents a major advantage, allowing the use of available power networks, utilities, logistics infrastructure, and experienced labor specialized in aluminum production and maintenance.

On governance, Agour said shareholder relations will be regulated through a comprehensive agreement outlining decision-making mechanisms in line with international best practices for joint ventures.