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SCZONE sees substantial $687m inflows from Chinese investors in energy, textiles, petrochemicals, bromine Initiatives

Sokhna Industrial Zone in Egypt's SCZONE attracts major investments as TEDA-Egypt and HIDIER Group join forces in transformative projects.

By: Business Today Staff

Sun, May. 28, 2023

Chinese capital flows reach $687 million as SCZONE attracts investments in energy, textiles, petrochemicals, and bromine - Press Photo

In a significant development for the Suez Canal Economic Zone (SCZONE), Mr. Waleid Gamal El-Dien, Chairman of the SCZONE, oversaw the signing of crucial agreements and contracts for several new projects set to be established within the Sokhna Industrial Zone. These initiatives come under the purview of industrial developer TEDA-Egypt, further strengthening the strategic partnerships and investment prospects in the region.

TEDA-Egypt, in collaboration with HIDIER Group, a renowned comprehensive company specializing in international energy projects, construction, operation, and integration, signed an agreement to establish a power supply station with a substantial investment of approximately $265 million. The initial phase involves constructing a substation with a capacity of 200 megawatts/220 kV, valued at around $38 million. This venture aims to enhance the power infrastructure and support industrial growth in the region.

Additionally, another agreement was inked between TEDA-Egypt and HIDIER Group for a project dedicated to the production of modern materials. This undertaking will focus on manufacturing advanced carburetors using coke as a raw material, with a total investment of about $100 million. The first phase of this project will witness an annual production capacity of 50,000 tons, representing an investment of approximately $30 million.

Furthermore, SCZONE's chairman witnessed the signing of a contract between TEDA-Egypt and a subsidiary of the Golden Spring Group. This agreement outlines plans to establish a textile industry project covering an expansive area of 66,000 square meters, with investments totaling approximately $12 million. The project aims to bolster the textile manufacturing sector and stimulate employment opportunities within the region.

These collaborative endeavors signify the commitment of both local and international entities to foster economic growth and capitalize on the abundant opportunities offered by the Sokhna Industrial Zone. The agreements reflect the confidence and trust in the SCZONE's investment climate, as well as the robust infrastructure and strategic location that make it an attractive destination for industrial development.

In the same context, an agreement was signed between the industrial developer TEDA-Egypt and Shandong Tianyi Company, a company operating in the field of petrochemicals and bromine production, to establish a project on an area of 270,000 square kilometers with investments of $110 million, with a production capacity of 140,000 tons of bromine, with an expected return of $600 million. The company is also setting up another project for the production of caustic soda at an investment cost of $200 million on an area of 300,000 square meters, to produce 500,000 tons of raw salt, 300,000 tons of soda ash, 270,000 tons of chlorine, and 7.5 thousand tons of hydrogen. annually, with annual revenues of $160 million.

TEDA-Egypt also signed an agreement with the Chint Global Center to provide services and training in the field of energy projects, as well as an agreement with the Zhejiang Center for Commercial and Economic Services to support cooperation in the fields of training between the industrial developer TEDA-Egypt and its companies in the industrial and commercial investment sectors.