A new cooling compressor plant, described as the first of its kind in Egypt, the Middle East, and Africa, has commenced operations in the West Gerga industrial zone as part of a wider EGP 1.6bn development programme in Upper Egypt.
Planning, Economic Development and International Cooperation Minister Rania Al-Mashat and Local Development Minister Manal Awad, who is also acting Environment Minister, inspected the facility alongside Sohag Governor Abdul Fattah Serag. The visit focused on the Al-Radwan International Engineering Industries factory, which represents a $5m investment on a 5,000-square-metre site, producing compressors with capacities ranging from 1/10 to 3/4 horsepower.
Project officials stated that the plant currently operates with 40% local components, with plans to increase this to 70% to reduce the national import bill. Governor Serag noted that the project aims to meet domestic demand and export to markets including Turkey, Saudi Arabia, Kuwait, the United Arab Emirates, Lebanon, Sudan, Yemen, and Libya.
The West Gerga industrial zone spans 1,089 acres and is located 8km from Sohag International Airport and 50km from Sohag city. It currently houses 223 factories with an occupancy rate of 94.7%. Industrial Development Authority representatives reported that general infrastructure development at the site cost EGP 633m, while integrated utility networks—including water, sewage, electricity, telecommunications, natural gas, and fire systems—accounted for an additional EGP 605m.
The zone includes a complex for small and medium-sized enterprises (SMEs) featuring 178 units that provide approximately 2,000 direct jobs. Its first phase covers 270 acres across 248 plots dedicated to engineering, mining, building materials, textiles, and ready-made garments. An additional 64-acre northern expansion is currently being equipped with utilities.
Minister Al-Mashat said the project reflects the state’s strategy to establish integrated industrial infrastructure and increasethe contribution of Upper Egypt governorates to the gross domestic product. She added that the Local Development Program in Upper Egypt (PLDUE) aligns with the “National Narrative for Economic Development and International Cooperation” to promote growth and job creation through sectoral interventions and production clusters.
Minister Awad highlighted that the PLDUE has injected approximately EGP 1.6bn into the West Gerga zone. She noted that these investments have improved occupancy rates and the quality of industries by leveraging the zone’s proximity to the Western Desert Road and the high-speed electric rail line. Awad stated that current infrastructure investments would also serve a planned 500-acre expansion.
The delegation included Hisham El-Helbawy, Assistant Minister of Local Development and Director of the PLDUE, Ahmed El-Sayes, the governorate’s Secretary General, and Mohamed Helmy, the Assistant Secretary General, alongside other executive and local leaders.
Governor Serag concluded that the efforts are part of a state vision to enhance integrated development in Upper Egypt and create a supportive environment for investment and sustainable employment for the governorate’s residents.
