Over $3 billion in Chinese investments in Suez Canal Economic ZoneOver $3 billion in Chinese investments in Suez Canal Economic Zone

Egypt's Suez Canal Economic Zone (SCZone) secured the investments from Chinese companies active in chemical, textile and apparel, power, pipes, and iron and steel industries, according to data aggregator Zawya Projects. The investment agreements and commitments were secured during the visit by SCZone Chairman, Walid Gamal El-Din.

Focus of the deals appears to be the Suez Economic and Trade Cooperation Zone (SETC), an industrial estate near the city of Suez, jointly established by the governments of China and Egypt, for the purposes of inviting Chinese companies to set up industries, as part of the Belt and Road project.

The SETC was built by the Tianjin Economic-Technological Development Area (TEDA). The TEDA Suez zone was created in 2008 and extended in 2016 during a visit by Chinese President Xi Jinping to Egypt.

Last week, the SCZone delegation held discussions with Xinxing Ductile Iron Pipes Co, regarding a proposed $2 billion ductile cast iron pipe manufacturing plant in the Sokhna Industrial Zone, Zawya said. “The first phase of the project will have an annual production capacity of 250,000 tonnes of ductile iron pipes, which is expected to increase to 500,000 tonnes per year in the second phase,” it said.

Zawya also said Shandong Tianyi Company planned to establish bromine and caustic soda production plants in TEDA Suez, with a total investment of $310 million. “The bromine production plant, valued at $110 million, will cover an area of 270,000 square meters and have an annual production capacity of 140,000 tonnes,” it said.

Related:China's Xinxing to invest $2bn in Suez Canal plants

Several other projects in textiles, power generation, apparel and fashion and other industries, worth tens of millions of dollars, to be located in Suez, Sokhna and Abu Khalifa were also announced.

While in China, Gamal El-Dien also met with officials from the China-Africa Development Fund, to discuss investments in the pharmaceutical, automotive, and green fuel industries. His counterparts expressed readiness to finance Chinese investment projects in SCZone, including those related to green hydrogen.