Ahmed Kamel – Egypt Daily News
Egypt is in advanced discussions with China’s Henan Zhongfu Industrial to establish a $2 billion aluminium production complex in the Suez Canal Economic Zone, in a move aimed at boosting industrial output and expanding export capacity to Africa and Europe.
The proposed facility, planned for East Port Said, would span more than one million square metres and is expected to generate around 3,000 direct jobs, with a particular focus on employment opportunities in Sinai and nearby Suez Canal cities.
The project was discussed during a meeting between Prime Minister Mostafa Madbouly and company chairman Cui Hongsong, alongside senior Egyptian economic officials.
Strategic Industrial Expansion
Egyptian authorities said the investment aligns with the country’s strategy to expand heavy industry and strengthen export-oriented manufacturing, particularly within the Suez Canal Economic Zone, which has become a cornerstone of Cairo’s economic development plans.
Officials emphasized that the project would help localize aluminium production and reduce reliance on imports, while supporting downstream industries such as packaging, transportation, construction, automotive, aviation, and rail manufacturing.
First Major Aluminium Complex in East Port Said
According to Walid Gamal El-Din, head of the Suez Canal Economic Zone, the facility would be the first large-scale aluminium production project in East Port Said, filling a gap in high-value manufacturing within the region.
The plant is expected to produce a range of products, including aluminium sheets for beverage packaging, battery components, and industrial materials used across multiple sectors.
Boost to Egypt’s Export Ambitions
Egypt has intensified efforts in recent years to attract foreign direct investment into strategic manufacturing sectors as part of its broader plan to increase exports and reduce import dependence.
The Suez Canal Economic Zone is central to this strategy, offering access to global shipping routes and multiple trade agreements covering markets across Africa, the Middle East, and Europe.
Chinese firm Henan Zhongfu, listed in Shanghai and operating in multiple international markets, said the planned investment is part of its global expansion strategy, strengthening its presence in key emerging industrial hubs.
Outlook
If finalized, the project would mark one of the largest Chinese industrial investments in Egypt’s manufacturing sector, reinforcing growing economic ties between Cairo and Beijing while further positioning Egypt as a regional industrial and export base.
