Part of the signing ceremony with Egyptian Prime Minister Mostafa Madbouly an Minister of Industry and Transport Kamel El-Wazir witnessing the signing in Cairo, Egypt. Photo courtesy of Egyptian cabinet Facebook page.
The event occurred at the government headquarters in the New Administrative Capital in the presence of Kamel El-Wazir, the Vice Prime Minister for Industrial Development and Minister of Industry and Transport.
The agreement paves the way for Xin Feng Egypt Steel to develop nine industrial projects and two service centres—one for research and development and the other for solid waste recycling. These projects will be executed in two phases over five years on a 3.75 million square metre site, with total investments reaching $1.65 billion and creating approximately 8,000 direct jobs.
The contract for the SCZone was signed by Waleed Gamal El-Din, chairman of the General Authority; Nahed Youssef Abdo, chairperson of the Industrial Development Authority; Tian Haikui, chairman of Xin Feng Egypt Steel; and Hao Gui Ru, the legal representative of the parent company, Xin Feng China.
According to the cabinet's statement on the project, the first phase of the Xin Feng Integrated Industrial Complex in Sokhna will span 2 million square metres and create 4,419 jobs.
It includes four factories: an automotive components factory with an annual output of 230,000 tonnes, a metallic components for home appliances factory with a yearly production of 50,000 tonnes, a standard fasteners (screws & nuts) factory with an annual production of 100,000 tonnes, and a hot-rolled coil factory with a yearly output of 2 million tonnes.
Production for the first three factories is set to begin in early 2027.
Meanwhile, the second phase will cover 1.75 million square metres, creating 3,575 jobs. It will consist of five additional factories: a machinery spare parts factory with an annual output of 200,000 tonnes, a rake disc factory with a yearly output of 150,000 tonnes, a steel structures factory with an annual production of 100,000 tonnes, an automotive parts factory (aluminium and magnesium alloys) with a yearly output of 20,000 tonnes, and a cold-rolled steel factory with an annual production of 2 million tonnes.
Additionally, two service centres will be established: a research and development centre and a solid waste recycling and maintenance centre.
The first four factories' trial operations are scheduled for January 2029, while the cold-rolled steel factory is set to begin trial operations in March 2030.
Prime Minister Madbouly highlighted during the event the key role of the SCZone in maximising Egypt's economic potential and competitive advantages, given its strategic location that provides access to global markets.
He also noted the region's continuously developing infrastructure, which enhances its ability to attract international companies to implement large-scale projects in targeted sectors. According to him, the SCZone has become a key driver of Egypt's economic development.
In his remarks, SCZone Chairman Waleed Gamal El-Din emphasised that localising industries is a top priority in the SCZone's strategic vision. He pointed out that SCZone has invested in infrastructure and facilities across its industrial zones and ports, which align with the latest global standards. Additionally, over the past three years, the SCZone has conducted successful international promotional campaigns to attract foreign investments across 21 targeted sectors, spanning industrial, service, and logistics.
Gamal El-Din also highlighted SCZone's geographical advantage, which allows it to access global markets through six Mediterranean and Red Sea ports.
He noted that the SCZone benefits from free trade agreements, investment incentives, and an improved business climate, supported by advancements in digital services and customs automation.
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