Egypt sign $755M tripartite framework agreements within SCZONE

CAIRO - 17 October 2023: Prime Minister Mostafa Madbouly attended the signing of new agreements within the Suez Canal Economic Zone (SCZONE), during the third edition of the Belt and Road Forum for International Cooperation. These agreements, signed with Chinese industrial developer TEDA - Egypt, aim to advance investment and development within the Sokhna Industrial Zone.

The signing ceremony, attended by high-level Egyptian officials representing President Abdel Fattah El-Sisi, marked a significant milestone in the collaboration between Egypt and China, emphasizing their commitment to the Belt and Road Initiative's goals of enhanced connectivity and economic cooperation.

Among the agreements, the Prime Minister witnessed a letter of intent between Walid Gamal El Din, Chairman of SCZONE, and Liu Aymin, Chairman of the Board of Directors of the TEDA Investment Company. This letter outlined plans for new expansions and the establishment of an additional 3 km2 industrial zone within the Sokhna Industrial Zone, complementing the existing TEDA region that has already attracted investments exceeding $2 billion.

Three tripartite framework agreements were also signed with total investments of $755 million. In addition, a letter of intent was signed for the industrial developer's expansions. Notably, one of these expansions involved a project by Xinxing Cast Iron Pipe Industries Company to produce ductile iron pipes within TEDA - Egypt.

The project aims to manufacture 250,000 tons of ductile iron pipes annually, with a focus on applications such as water and wastewater supply systems, seawater desalination, and heating. Around 80 percent of the production is intended for export, with projected annual sales amounting to approximately $250 million. T

he project's first phase, occupying an initial area of 240,000 square meters, requires investments of around $145 million and is expected to create 600 job opportunities. This agreement builds upon the previously reached understanding between the Suez Canal Economic Zone delegation and Mr. Jia Zhiru, Chairman of the International Chenxing Group, during their visit to China in May.

Another framework agreement was signed between the Chairman of SCZONE, the Chairman of TEDA Investment Company, and Mr. Liu Guo, Executive Director of China Glass.

This agreement establishes a project within the Sokhna Integrated Industrial Zone for the production of float glass and rolled glass. The project aims to manufacture 243,200 tons of float glass series products and 235,000 tons of rolled series products annually, with an expected annual sales revenue of approximately $250 million. Around 80 percent of these products will be exported. Covering an area of 500,000 square meters, the project requires investments of $500 million and is projected to provide 600 to 800 job opportunities.

Additionally, a framework agreement was signed between El Din, Aymin, and Lima O Press, Chairman of the Board of Directors of the Shandong Tianyi Company. This agreement aims to establish an industrial complex project in Egypt for bromine production and deep processing.

The project will utilize concentrated seawater or brine from local seawater desalination plants as raw materials, with an expected annual production of 140,000 tons of bromine products. Located within TEDA - Egypt in the Sokhna Integrated Industrial Zone, the project will cover an area of approximately 270,000 square meters, with investments totaling $110 million. Its entire production will be exported, and it is anticipated to generate 700 job opportunities.