Egypt’s Suez Canal is an important global shipping route, connecting the Mediterranean and Red Seas. Recently, after an official Egyptian visit to China, Chinese companies have committed to investing over US$3 billion in industrial projects in the Suez Canal area, focusing on the Suez Economic and Trade Cooperation Zone (SETC). The investments cover various industries like chemicals, textiles, power generation, steel manufacturing etc. The SETC aims to attract Chinese companies to set up industries in Egypt as part of the Belt and Road Initiative. In total, agreements and proposed projects worth around US$3.63 billion were announced during the visit.
China to invest US$2 billion in an iron pipe plant in Egypt’s Suez Canal area
A major investment is a US$2 billion plan by Chinese company Xinxing Ductile Iron Pipes to build a manufacturing plant to produce 250,000-500,000 tonnes per year of ductile iron pipes in the Sokhna Industrial Zone near Suez. This shows China’s interest in investing in heavy industries and infrastructure projects in the strategic Suez Canal region.
Multiple Chinese chemical plants to be set up in Suez Canal Economic Zone
Chinese firm Shandong Tianyi plans to invest US$310 million to construct bromine and caustic soda production plants in the TEDA Suez industrial park near Suez Canal. The bromine plant will have a capacity of 140,000 tonnes annually while the soda plant can produce 500,000 tonnes of products per year. This indicates China’s intention of increasing economic cooperation with Egypt in the chemical sector.
China-Africa fund to potentially finance green energy projects in Suez Zone
During the visit, the China-Africa Development Fund chairman discussed potential investments in pharmaceuticals, automobiles and green fuels in the Suez Canal Zone with Egyptian officials. The Fund expressed interest to finance projects involving Chinese investors in the Zone, including green hydrogen related initiatives. This signals China’s openness to invest in Egypt’s renewable energy industry.
Multiple smaller investments in garments and power equipment manufacturing announced
Apart from the large chemical projects, several smaller investments were also announced during the visit. This includes a US$12 million textile factory project, US$365 million of agreements to build a 200MW power station and production of advanced combustion equipment, and a US$20 million apparel manufacturing facility.
In conclusion, recent high-level commitments show Chinese companies’ growing appetite to invest billions in strategic sectors like infrastructure, energy and manufacturing in the vital Suez Canal economic region of Egypt. This indicates strengthening economic ties between the two countries under China’s Belt and Road Initiative.