In a significant development for economic cooperation, the Suez Canal Economic Zone (SCZONE) has inked a $297 million contract with Chinese company XinFeng to establish a factory for producing hot-rolled iron coils in the Sokhna Industrial Zone. The contract, signed during a ceremony attended by key officials, grants land usufruct for an expansive 750,000 square meters, paving the way for a project expected to create 1,200 job opportunities.
The signing ceremony, attended by SCZONE CEO Walid Gamal El Din and Ni Yuefeng, Secretary of the Provincial Party Committee of Hebei Province in China, marked a pivotal moment in bilateral economic ties. The contract was signed by Mohamed Abdel Gawad, Deputy CEO of the Authority for Investment and Promotion, and Tian Haikui, Chairperson of XinFeng Company, in the presence of Minister Plenipotentiary at the Chinese Embassy in Cairo, Chang Tao, alongside several executive leaders of the authority.
Addressing the gathering, Gamal El-Din highlighted the strategic importance of the partnership between SCZONE and Chinese investments, terming it a testament to collaborative success. He commended Chinese investments in the TEDA-Egypt area, totaling around $2 billion, and underscored the potential for new partnerships in the West Qantara Industrial Zone.
The XinFeng project, aiming to export 70% of its production, aligns with SCZONE’s objectives and encompasses subsequent stages for producing engine blocks. Approval for necessary gas and electricity has been secured from the Supreme Council for Energy, with remaining approvals underway prior to land handover.
Gamal El-Din elaborated on broader collaboration with Chinese investments, extending to maritime and logistics fields through partnerships with Sokhna Port entities such as Hutchison International Company, COSCO, and CMA. Discussions during the meeting also explored opportunities for cooperation in automotive, new energy, data centers, and green product manufacturing.
Ni Yuefeng expressed satisfaction with Egypt’s strides toward comprehensive economic development, affirming the mutual aspirations of both nations’ leadership. Drawing parallels between experiences in Egypt and Hebei Province, he expressed a desire to double Chinese investments in SCZONE given its strategic location.
The XinFeng project’s inception stems from discussions during SCZONE’s promotional tour in China in May 2023, underscoring the commitment to equip the project with cutting-edge technology for top-quality product output.