Trafigura and Egyptalum plan a major expansion to boost aluminium production and support industrial growth
Cairo, Egypt, 8 May 2026 – Global commodities company Trafigura has signed a strategic agreement with Egyptalum to develop a new aluminium smelter complex in Egypt, marking one of the country’s largest industrial investment projects in recent years.
The planned project will be located at the Nag Hammadi industrial complex in Upper Egypt and is expected to cost between $750 million and $900 million. The expansion includes the construction of a new primary aluminium smelter capable of producing 300,000 tonnes annually, along with a 150,000 tonne anode production plant.
Once completed, the project could nearly double Egypt’s aluminium production capacity, helping strengthen the country’s position in the global metals and manufacturing market. Industry experts say the investment reflects rising global demand for aluminium across sectors such as construction, electric vehicles, renewable energy, packaging, and infrastructure development.
Under the agreement, Trafigura will participate as a minority investor, financing partner, and long-term supplier for raw materials and aluminium operations. Egyptalum and Metallurgical Industries Holding Company will retain majority ownership of the new project entity.
Analysts believe the expansion could create significant economic opportunities for Egypt through industrial development, exports, job creation, and stronger domestic manufacturing capabilities. The project is also expected to support downstream industries that rely heavily on aluminium products.
The move comes as countries worldwide continue investing in industrial infrastructure and metal production to meet growing global demand for lightweight and recyclable materials. Aluminium remains a critical material for modern industries because of its durability, low weight, and energy efficiency benefits.
The project highlights Egypt’s broader strategy to attract international investment, expand industrial capacity, and strengthen its role as a regional manufacturing and export hub in the Middle East and Africa.
