Egyptalum partners with Trafigura to build $900M aluminium smelter with EFG Hermes as advisor

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EFG Hermes has been appointed as the sole financial advisor to Metallurgical Industries Holding Company (MIH) and Egyptalum on a new partnership with Trafigura to build a primary aluminium smelter in Egypt.

The project will be developed through a newly created company, NewCo, which will be majority-owned by MIH and Egyptalum. Trafigura will take a minority stake and also act as a debt provider, as well as a long-term partner for supplying raw materials and purchasing output.

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EFG Hermes will advise on both equity and debt financing for the project. The signing of the term sheet marks an important step forward for the partnership.

Maged El Ayouti, Co-head of Investment Banking at EFG Hermes, said, “This partnership underscores EFG Hermes' ability to structure complex, high-impact financing frameworks that enable national champions to attract international capital and execute transformative growth strategies in sectors that drive sustainable economic development.” 

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The project will be located at the Nag Hammadi complex and is expected to cost between USD 750 million and USD 900 million. It includes the construction of a new primary aluminium smelter with a capacity of about 300,000 tonnes per year, along with an anode plant capable of producing 150,000 tonnes annually.

Ayouti added, “This is a critical milestone in the journey toward doubling Egyptalum's production capacity and reinforcing Egypt's standing on the global stage. We remain fully committed to supporting all parties through to reach the official closing and successful execution of the transaction." 

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Once completed, the expansion is expected to nearly double Egyptalum’s production capacity. This could increase export revenues and strengthen Egypt’s position in the global aluminium market.

Officials said the project is a major step in expanding the country’s industrial base and attracting international investment into key sectors. EFG Hermes added that it will continue to support all parties until the transaction is completed and the project is implemented.