Six Chinese companies sign MoUs with Egypt for new manufacturing projects

Cairo – September 8, 2024:  During the three-day Forum on China-Africa Cooperation in Beijing, Egypt and China signed agreements with Chinese companies totaling over $1.1 billion, including a range of new manufacturing projects and industrial facilities focused on the Suez Canal Economic Zone (SCZone) and other strategic locations across Egypt.

Among the key agreements, six Chinese companies have signed land usufruct agreements with the China-Egypt TEDA trade zone in Ain Sokhna.

Chemicals manufacturer Befar Group will establish a $500 million chlor-alkali production facility, Egypt's first green chemical plant. The facility will use wind and solar energy, electricity, and natural gas in its first phase to generate steam as its energy source.

China Glass Holding will build a $300 million glass factory, producing float glass and super-white galvanized glass, with a daily output of 800 tons. This factory will cater to the local market and export to North Africa, the Middle East, and Europe, with expected annual export revenues of up to $120 million.

Shandong Tianyi Chemical is investing $110 million in a bromine extraction complex that will extract bromine using seawater desalination byproducts.

Elite Solar will construct a $100 million factory to produce N-type solar cells with a total capacity of 2 gigawatts, creating 600 jobs and significantly contributing to the photovoltaic energy industry and attracting related industrial clusters.

Kaks Investment will set up a $50 million support hub for the home appliance supply chain, aiming to strengthen the local production of components for the home appliances industry. It will include component manufacturing, customs storage services, spare part distribution, assembly operations, sheet metal processing centers, injection molding, and foam production.

Dahui Glucose and Tiba Starch will invest $7.5 million in a modified starch production facility to meet demand in Egypt, the Middle East, and East Africa. It will produce 20k tons annually in its first phase before ramping up annual production to 50k tons.

China Energy, currently managing 12 projects in Egypt worth a combined $2 billion, has pledged to accelerate the establishment of factories and production centers for renewable energy technologies, including green hydrogen and ammonia projects.

The company plans to relocate its North African headquarters to Egypt, further strengthening the economic ties between the two nations.

The countries also signed several agreements to strengthen cooperation and investment within the ICT sector.