Egypt will construct the largest fibre optic cable plant in the Middle East and North Africa (MENA) with investments worth over EGP 1 billion ($63.2 million), the Suez Canal Economic Zone (SCZone) said.
The 50,000 square metre plant in the Red Sea's Gulf of Suez city of Ain Sokhna is planned to start operation in the third quarter of 2021, SCZone Chairman Yehia Zaki said in a statement on Wednesday.
The project is part of an initial deal signed between the government-owned Arab Organisation for Industrialisation (AOI) and IT service provider Benya Capital.
"The annual production capacity of the project is four million km of cables, while investments in the project amount to more than EGP 1 billion," Zaki said.
The deal is part of the government's efforts to boost the industrial sector, promote local technology and reduce imports, AOI Chairman Abdel-Moneim Al-Tarras said, adding that the project will make available jobs for young engineers and technicians.
The government said manufacturing fibre optic cables will meet the needs of telecoms, power, gas and oil firms, as well as new cities the country is building.
Benya Capital has chosen US firm Corning Inc, a leading provider of optical fibres, cables, and communication solutions, as a strategic supplier of the factory.
The Egyptian government hopes the economic zone around the Suez Canal will develop an international industrial and logistics hub that will attract much-needed foreign investment.