CNCEC signed USD 34 million agreement to establish its first manufacturing facility in Egypt

In a new milestone reflecting growing confidence in Egypt’s industrial sector, China National Chemical Engineering Company (CNCEC) announced that it has signed a USD 34 million agreement with the Suez Canal Economic Zone (SCZONE) to establish its first manufacturing facility in the country. The project, to be developed in the Ain Sokhna Industrial Zone, will focus on the production of equipment and manufacturing lines used in sodium carbonate (soda ash) plants.

The facility will be built on an area of approximately 100,000 square meters and will manufacture steel structures, carbon steel and stainless-steel pipes, as well as non-standard industrial equipment. The designed annual production capacity is expected to reach 20,000 tons of steel structures and 400,000 diameter inches of piping, with products serving both soda ash facilities and other industrial applications.

The agreement represents the first of two integrated projects planned by CNCEC in the Sokhna area. A second investment, to be developed at Sokhna Port in two phases, is expected to attract around USD 250 million in investments. Covering an area of 200,000 square meters, the port-based facility aims to manufacture carbon steel, low-alloy steel, stainless steel, composite sheets, and various types of containers.

Officials from the Suez Canal Economic Zone stated that the investments will support Egypt’s strategy to localize soda ash production and reduce import dependency across several sectors, including chemicals, petrochemicals, oil refining, stainless steel manufacturing, and tires. They added that SCZONE’s integrated industrial and port infrastructure, combined with Egypt’s trade agreements, continues to enhance the zone’s attractiveness to global investors.