$855 million To pump investments.. Egypt concludes new agreements with Chinese companies

Egypt concluded 4 new agreements for Chinese investments with the Chinese industrial developer TEDA-Egypt, worth $855 million, within the Sokhna Industrial Zone and the West Qantara Industrial Zone, on the sidelines of participation in the third session of the Belt and Road Forum for International Cooperation.

Dr. Mostafa Madbouly witnessed the signing of a letter of intent between Walid Gamal El Din, Chairman of the General Authority for the Suez Canal Economic Zone, and Liu Aymin, Chairman of the Board of Directors of the China Africa TEDA Investment Company, regarding a request for new expansions to develop and develop another area of land amounting to 3 km2 to establish an industrial zone. An additional area in the industrial zone in Sokhna, adding to the area of the TEDA region - Egypt, which amounts to 7.3 km2 and the total investments in it exceeded two billion dollars.

$755 million

Three tripartite framework agreements were also signed, with investments amounting to $755 million, in addition to the signing of a letter of intent for the industrial developer’s expansions. The first of these was the signing of the Chairman of the General Authority of the Suez Canal Economic Zone, the Chairman of the China Africa TEDA Investment Company, and He Qishu, Chairman of the Board of Directors of the Suez Canal Economic Zone. Xinxing, Cast Iron Pipe Industries has received a framework agreement aimed at establishing a project to produce ductile iron pipes within TEDA - Egypt.

 It is planned that the project will begin production with a capacity of 250,000 tons of ductile iron pipes and its products, mainly to cover the needs of water and wastewater supplies and lines, seawater desalination, and heating.

Foreign markets

The project also aims to export 80% of its production to foreign markets, with annual sales amounting to about $250 million. It will be built on an area of 240,000 square meters for the first phase, with investments estimated at about $145 million for the first phase. It will also provide 600 job opportunities.

The General Authority for the Suez Canal Economic Zone also signed a framework agreement with the China Africa TEDA Investment Company, to establish a project to produce float glass with a capacity of 800 tons per day, and a rolled glass production line with a capacity of 800 tons per day.

It is expected to produce 243,200 tons of float glass series products for construction annually and 235,000 tons of rolled series products for PV modules annually, which can achieve annual sales of about 250 million dollars.

The project aims to export 80% of its products. The project is being built on an area of 500,000 square meters within the Sokhna Integrated Industrial Zone, affiliated with the Suez Canal Economic Zone, with investments of $500 million, through which it can provide 600 to 800 job opportunities.

Industrial complex project

As for the third signing, it was for a framework agreement between the Chairman of the General Authority of the Suez Canal Economic Zone, the Chairman of the China Africa TEDA Investment Company, and Lima O Press, Chairman of the Board of Directors of the Shandong Tianyi Company, which aims to establish an industrial complex project for bromine and deep processing in Egypt, using concentrated seawater. Or brine from salt lakes from local seawater desalination plants as raw materials.

  The annual production volume reaches 140 thousand tons of bromine products, within the industrial developer (TEDA - Egypt) in the Sokhna Integrated Industrial Zone affiliated with the Suez Canal Economic Zone, on an area of about 270 thousand square meters, with investments amounting to 110 million dollars. The project also aims to export 100 % of production and providing 700 job opportunities.

Suez Canal Economic Zone

Dr. Mostafa Madbouly pointed out that the Suez Canal Economic Zone provided a model for economic cooperation with Chinese investments, and was able to provide a favorable environment for Chinese projects in various industrial fields targeted by both sides.

Walid Gamal El-Din, Chairman of the General Authority of the Suez Canal Economic Zone, said that Chinese investments came as a result of the economic zone’s efforts to provide the appropriate environment to attract more of them, until it reached two billion dollars today.

He added that new spaces have been made available for Chinese investments within the West Qantara Industrial Zone, in which agreements were signed regarding the establishment of projects exceeding $100 million as the nucleus of new industrial complexes in one of the promising industrial zones in the economic zone.