Photo courtesy of Egypt's cabinet
The first phase will focus on establishing production lines, equipment, and piping needed for sodium carbonate, commonly known as soda ash, manufacturing. Output will include steel structures, prefabricated carbon and stainless-steel pipes, and non-standard industrial equipment.
Soda ash is a key input in chemical, petrochemical, and petroleum refining industries.
The facility will be built on 100,000 square metres and is designed to produce 20,000 tonnes of steel structures annually, along with prefabricated pipes equivalent to 400,000 diameter inches per year. No timeline for completion was disclosed.
Egypt currently imports all of its soda ash needs—estimated at between 300,000 and 400,000 tonnes annually—at a cost of millions of dollars in foreign currency. Officials say the project is intended to reduce import dependence, meet domestic demand, and support exports.
CNCEC specializes in chemical and petrochemical engineering. Egypt has signed multiple industrial agreements with Chinese firms in the SCZone in recent years, including projects related to phosphate ore processing.
The soda ash project has been under discussion since October 2025. At the time, presidential spokesman Mohamed El-Shennawy said Egypt would facilitate its implementation to strengthen the petrochemicals sector and reduce reliance on imported raw materials.
The second phase
SCZone and CNCEC also discussed a second phase of the project, which would involve $250 million in investment to manufacture chemical and petrochemical equipment at Ain Sokhna Port.
The proposed phase would span 200,000 square metres and include a quay extending 350 to 400 metres, with capacity for future expansion.
Planned output includes carbon steel, low-alloy steel, stainless steel, and composite sheets, as well as industrial towers and containers used in petrochemicals, power generation, mining, and pharmaceutical industries.
These moves align Egypt’s strategy to achieve self-sufficiency in key industrial materials, reduce imports, and boost exports to $115.8 billion by 2030.
This will also support foreign-currency inflows, reduce pressure on public finances, increase exports to $145 billion, and double the contribution of foreign direct investment (FDI) to GDP to 4.4 percent over the next four years.
The cabinet has also directed export councils to prepare plans to raise non-oil exports by 15–20 percent annually through 2030.
The SCZone has attracted around $13 billion in foreign investment over the past three years. It could add between $3 billion and $5 billion a year to Egypt’s GDP over the medium term if industrial and logistics activities in the zone grow by 10 to 12 percent annually.
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