SCZONE signs $297m contract with Chinese XinFeng for iron products project in Sokhna Industrial Zone

Daily News Egypt
4 Min Read

The Suez Canal Economic Zone (SCZONE) granted land usufruct for an area of 750,000 square meters to the XinFeng Company for iron products. The purpose is to establish a factory for producing hot-rolled iron coils in the Sokhna Industrial Zone, creating 1,200 job opportunities, with total investments of $297m.

Walid Gamal El Din, the CEO of SCZONE, and Ni Yuefeng, the Secretary of the Provincial Party Committee of Hebei Province in China, attended the signing ceremony of the usufruct right contract. The contract was signed by Mohamed Abdel Gawad, the Deputy CEO of the Authority for Investment and Promotion, and Tian Haikui, the Chairperson of XinFeng Company, in the presence of Minister Plenipotentiary at the Chinese Embassy in Cairo, Chang Tao, and several executive leaders of the authority.

During the signing ceremony, Gamal El-Din also met with a high-level Chinese delegation led by Ni Yuefeng, to discuss cooperation between the SCZONE and Hebei Province in areas of mutual interest.

Gamal El-Din emphasized that the strategic partnership between the economic zone and Chinese investments represents a success story based on joint construction. He expressed appreciation for Chinese investments in the TEDA-Egypt area, where investments have reached about $2bn through the presence of 150 companies in various industrial and logistical sectors. This paves the way for new partnerships in the promising West Qantara Industrial Zone.

Notably, three projects for Chinese companies have been contracted since the beginning of the current fiscal year 2023/2024: D.Cita for clothing accessories, Henshing for dyeing and textile processing, and Hennoway for luggage manufacturing.

This partnership serves as a model for distinguished economic cooperation based on shared visions in industrial sectors. The XinFeng project aims to export 70% of its production and includes subsequent stages for producing engine blocks, aligning with the economic zone’s objectives. Approval has been obtained from the Supreme Council for Energy regarding the necessary gas and electricity for the project, and the remaining approvals are being completed before handing over the land.

Gamal El-Din further explained that cooperation with Chinese investments extends to maritime and logistics fields through the Sokhna Port, represented by Hutchison International Company, and global shipping lines COSCO and CMA. These collaborations aim to develop one of the container terminals at Sokhna Port. During the meeting, opportunities for cooperation with Hebei Province companies were discussed, especially in the traditional automotive industry or those operating in new energy, and data centres, and manufacturing green products based on clean energy.

Ni Yuefeng expressed delight at Egypt’s steadfast steps toward achieving comprehensive economic development. He affirmed that the Egyptian-Chinese economic relations reflect the common aspirations of the political leadership in both countries and provide a model for Chinese cooperation with Arab and African nations. Notably, this is his first visit to Egypt, and he has witnessed the reflection of Egypt’s 2030 vision in investment support policies.

Yuefeng drew parallels between the experience of the New Administrative Capital and the new Xiong’an area in Hebei Province, which will cover an area of 1,770 square kilometres upon completion. He expressed a mutual desire to double Chinese investments in the economic zone, especially given its strategic location in Africa facing Europe. The signing of the XinFeng project within the SCZONE marks the beginning of further cooperation with Chinese provincial companies.

This project emerged from discussions during the SCZONE delegation’s promotional tour in China in May 2023, during which it was agreed that the project would be supplied with the latest equipment used in this field to produce the best quality products.

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