Egyptian Minister of Industry Khaled Hashem participated in laying the foundation stone for the Sungrow Power Suez plant, which will specialize in advanced battery energy storage systems (BESS) and is set to become the first dedicated energy storage systems manufacturing facility in the Middle East and Africa.
The plant is being established within the Egypt-China TEDA Economic and Trade Cooperation Zone in Ain Sokhna, reinforcing Egypt’s efforts to localize advanced clean-energy technologies and strengthen its industrial partnership with China.
Hashem said the project represents a significant addition to Egypt’s efforts to develop clean-energy industries and marks a new chapter in the country’s longstanding industrial and investment partnership with China.
He highlighted the development of the TEDA zone into a major industrial hub capable of attracting investment and providing an integrated environment for manufacturing and exports. The establishment of Sungrow’s plant in the zone, he added, further strengthens its position as a hub for renewable-energy-related industries and supports Egypt’s efforts to attract advanced technologies and develop high-value-added industries.
Supporting renewable energy integration
Hashem said the project is particularly important as the first specialized manufacturing plant for energy storage systems in the Middle East and Africa.
The facility is expected to support Egypt’s transition to clean energy, enhance the stability of the national electricity grid, and increase its ability to accommodate growing shares of renewable energy through advanced energy storage solutions.
“The industrial value of the project is not limited to its production capacity,” Hashem said, stressing that the investment will also contribute to developing qualified Egyptian talent, transferring technology and expertise, and supporting the growth of local feeder industries.
The minister called on Sungrow to increase the plant’s local component ratio and expand cooperation with Egyptian institutions and research centres to facilitate the transfer of advanced technologies and expertise to national cadres.
Energy equipment identified as strategic industry
Hashem noted that the Ministry of Industry recently launched an updated industrial strategy aimed at building a more competitive industrial base, attracting investment in advanced technologies, and strengthening the integration of Egyptian industry into global supply chains.
The strategy identifies priority industrial groups covering key sectors, enabling industries, strategic industries, feeder industries, as well as recycling and circular economy activities.
Equipment and components required for solar energy and other new and renewable energy technologies represent a key enabling industry under the strategy, he said, given their role in supplying essential inputs to a wide range of industrial activities.
The Sungrow energy storage battery plant therefore represents an important step towards establishing a local manufacturing base for energy storage systems, strengthening Egypt’s capabilities in the sector and supporting the country’s plans to expand clean-energy use.
Operations targeted for next year
Hashem said the foundation stone ceremony reflects Egypt’s clear direction towards localizing advanced technologies, developing production capabilities in clean-energy industries, and strengthening integration between the energy and industrial sectors.
He expressed his expectation that construction and equipment installation would proceed according to the agreed timeline, with actual operations targeted to begin next year.
The minister also expressed his hope for further industrial cooperation and new investments that would strengthen the Egyptian-Chinese industrial partnership, deepen integration between energy and industry, and contribute to building integrated value chains in future-oriented industries.
