Ezz Steel Company

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Performance of the company

Steel industry is generally reliant on three areas the development, bundling and auto fabricating segments. The biggest steel maker in the universal business sector is china with around 220 million tons of steel generation which is sum to 23percent of the world steel creation. The second biggest maker is Germany with 159 million tons of unrefined steel which record to 18percent of world creation in 2002, the third and fourth makers among the world nations are Japan and USA. While USA is the biggest steel merchant, Japan is the biggest steel exporter in 2002 with the most astounding development rate in steel creation.

Then again, The Egyptian steel generation is controlled by Ezz steel rebars enterprise (ESR) with 28percent offer of the business sector. EzzCompany with dekhela secures more than 60percent of the steel piece of the pie and 54percent of the aggregate business sector potential limit. There are other private makers, for example, kouta steel bunch, Suez Canal, and beshai steel, which all privately owned businesses represent around 26percent of the business sector while general society segment organizations has low piece of the pie with 7percent just of the business sector. Despite the fact that general society area was the part who acquaint the steel business with the Egyptian economy, after the privatization software engineer occurred the private segment tends to me the division which controlling the steel business in Egypt till now(Ahmed, 2014).

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Company profile over the past ten years

Al Ezz Dekheila Steel Company (EZDK) EZDK, known as “Alexandria National Iron & Steel Company S.A.E.", previously. EZDK is EZ’s considered one of the largest steel company in Egypt that producing rebars and flat steel. The foundation of the company started in 1982 and has expanded since then under the same management until the acquisition. In 2000, 20 percent of EZ acquired by EZDK and followed by increase in stake to raise its ownership to 50.28percent, and added another 3 percent stake reach a 54.59 percent stake in 2008. different public sector contribute the balance by authorities and banks approximately 44.5 percent. At this moment, the company managed by the chairman and managing directors. The board consist of 13 seat, seven seats taken by the chainman and managing directors. Majority of stake acquired by EZDK in EFS by 55 percentage by raising the capital with 330 Million U.S dollars(Profile, 2015).

this decision have been taken by the management in order to flat activity under the domination of one controlling entity with the consideration that this company already operating 1.0 mn tons of flat steel. MERIS have viewed this action positively which will enhance the integration among the group. This company consider the only one that integrated mini-mill manufacturing technique. Three direct-reduction iron (DRI) being operated by the company with a capacity of 1.75 mn tons of rebars and flat steel with capacity of 1.0mn and 4.57 mn tons of DRI and billets. More than 95 percent of the utilization rate of the company over the last three years of production. majority of the DRI and billets products totally absorbed which worth mentioning. More than 80 percent of total sales target primarily the domestic market in fall of 2009 and more than 90 percent in the end of 2008(Hyman & Kovacic, 2004).

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The satisfaction policy which being approached by the company against the local demand and the excitability to the expert contributed to dominated the market share. Moreover the company increase its own aim the exportation of flat steel with more than 40 percent in 2009 to cover the absence of EFS.

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The Purpose Company

The Company and its reason for existing is assembling, exchanging and circulation of iron and steel producer of different sorts and related items and services.

The following analysis of investments of Steel Company that appearing in consolidated financial statements:

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Effect of Egyptian long steel supply imports :

The power of challenge in Egypt from rebar imports has expanded as of late. As the accompanying graph illustrates, at their stature in 2008 rebar imports represented 33percent of aggregate in Egyptian long steel supply, decreasing EZ's offer of supply fundamentally. In spite of the fact that this figure fell to some degree in the primary portion of 2010, the possibility of further imports keeps on forcing huge limitations on the business conduct of Egyptian rebar makers, including EZ.

EZ's business reasoning is driven by a promise to offer clients amazing items at aggressive costs, and in this manner to remain the favored supplier in its residential business sector. To keep up that notoriety it endeavours– subject dependably to full consistence with the law of the Egyptian competition – to make costs underneath worldwide levels. As the accompanying diagram illustrates, even where expanding crude material expenses have constrained huge cost builds, EZ's long steel costs in Egypt have stayed, generally, underneath the normal in all other global markets(Omran & Pointon, 2001).

The authority of the Egyptian competition's

Taking after the solicitation from the Minister of industry and trading in 2007, the authority of the Egyptian Competition (alluded to in the rest of this outline as 'the ECA') dispatched an examination under the law of the Egyptian Competition (alluded to in the rest of this rundown as 'the Law').

The ECA's examination was broad and exhaustive. Notwithstanding examining huge amounts of information, it held gatherings and got data from a scope of outsiders, including rebar made of steel makers, crude material suppliers, advisors, contracting organizations and distributers.

The ECA issued its last report in June 2007

The authority of the Egyptian competition's examination concerning the market of steel rebar

- The expansion in rebar costs was prevalently brought on by increments in crude material and consequently creation costs (over which rebar makers had a few of control);

- The