Part of the signing process. Photo courtesy of Egyptian cabinet.
The three contracts signed, aim to improve Egypt’s industrial base and local manufacturing through global investments.
The contracts' signing, witnessed by Prime Minister Mostafa Madbouly on Tuesday, increase the total investments in the SCZone by 10.9 percent to almost $5.1 billion during the first half of FY 2025/2026, compared to $4.6 billion in FY 2024/2025, according to Chairman of the General Authority for the SCzone Walid Gamal El-Din.
Established in 2008, Egypt TEDA Investment Company is the main body of the development and construction of the China-Egypt TEDA Suez Economic and Trade Cooperation Zone (TEDA Cooperation Zone).
The first contract with Chinese textile and chemical fiber manufacturer Xinfengming Group was for an integrated industrial complex worth over a $800 million in investments, for polyester fiber and polymer industries, to be built over an area of 400,000 square metres over three phases, starting in May 2026. The complex will have a production capacity of up to 1.08 million tons per year, providing 3,000 direct job opportunities.
The project’s first and second phase include establishing production lines for over 360,000 tons of polyester yarns for Partially Oriented Yarn (POY) and Draw Textured Yarn (DTY), creating nearly 1,000 direct jobs. It will also generate almost $455 million per year of expected sales as half of the production is allocated for exports to regional and international markets.
Meanwhile, the third phase will complete the complex and aims to increase overall production capacity, to fill the needs of thee spinning and weaving industry in Egypt. Operation and production will begin in 4Q of 2027, while the second phase will begin in 2028, operations begin 2029, and the third phase will begin in 2029, with operations starting in 2030.
The second contract was with a Xinfengming Group subsidiary and tire manufacture Chaoyang Langma Tire, for an industrial complex worth a total of $190 million in investments for heavy truck tires and passenger car tires manufacturing. The complex will be built over an area of 200,000 square metres, providing 1,400 direct job opportunties over two phases. It will have a production capacity of 1 million heavy truck tires and 4.5 million passenger tires annually, beginning in April 2026.
The first phase includes implementing basic construction work, establishing the heavy truck tire production line and supporting service facilities. The second phase will begin in September 2028, for a one year period, with the aim to expand the heavy truck tire line, start its pilot operations for two monnths and establish a passenger car tire production line with a four months experimentation period.
Moreover, the third contract was signed with Chinese hygiene products manufacturer Tongling Jieya Biologic Technology for an industrial complex worth up to $160 million of investments to produce health products, over an area of around 160,000 square metres, providing 1,000 direct jobs.
The complex aims to reach an annual production capacity of 10 billion pieces of wet wipes, two billion baby diapers, and 100,000 tons of nonwomen fabrics manufactured using wateer-jet and hot air technoligies. The project is expected to achieve almost $270 million in annual revenues when fully operational, yet no timeline has been disclosed.
These projects show international companies’ confdence in Egypt’s investment climate, underscoring the advanced infrastrutcture in the SCZone, supporting Egypt’s economic narrative to improve manufacturing, increase exports and provide job opportunities, Madbouly said.
Egypt’s narrative aims to double the contribution of foreign direct investment to GDP to 4.4 percent, create 1.5 million jobs and achieve $145 billion in exports by 2030.
The SCZone has been adding more Chinese presence to its portfolio, including Xinmin Glass Egypt’s $70 million glassware plant in the Ain Sokhna 360 industrial city, China’s Sailun Group’s $1 billion tire manufacturing facility in Ain Sokhna Integrated Zone.
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