Walid Gamal El-Din, Chairperson of the Suez Canal Economic Zone (SCZONE), witnessed today the signing of a contract between Al-Ahram Chemicals and Resins and Derivatives Company and the Main Development Company (MDC) to establish an industrial complex for the production of formaldehyde, form urea, and several related chemical derivatives such as glue and melamine. The new complex will be located within the Sokhna Industrial Zone, developed by MDC—the industrial arm of the Economic Zone. The project spans 14,000 square metres and represents a total investment of $10m (EGP 473.7m). It is expected to create around 150 direct job opportunities. Commercial operations are scheduled to begin in early 2027, with an annual production capacity of 25,000 tonnes of formaldehyde and 25,000 tonnes of form urea, alongside other derivative products serving various industrial applications. The agreement was signed by Walid Youssef, Managing Director of the Main Development Company, and Romany Girgis Fawzy, Chairperson of Al-Ahram Chemicals and Resins and Derivatives Company, in the presence of senior officials and company representatives. Commenting on the signing, Gamal El-Din said the project represents "a qualitative addition to the chemical industries within the Economic Zone," highlighting its role in strengthening manufacturing value chains—particularly in industries reliant on intermediate materials such as wood, plastics, and adhesives. He emphasized that the initiative aligns with SCZONE's strategy to localize key chemical industries, increase local content, and reduce dependence on imports, thereby enhancing the competitiveness of Egyptian industrial products. "The Sokhna Industrial Zone continues to attract investments in chemical, energy, and raw material projects, leveraging its strategic location adjacent to Sokhna Port," Gamal El-Din added. "This integrated ecosystem makes it a prime hub for heavy and medium industries targeting both regional and global export markets." He reaffirmed SCZONE's commitment to supporting investors through a comprehensive business environment that includes advanced infrastructure, logistics services, and a package of investment incentives designed to foster sustainable industrial development. The Al-Ahram Chemicals project marks the second agreement signed under the initiative to expand export-oriented industrial operations within the Suez Canal Economic Zone during the 2025/2026 fiscal year, as part of Prime Ministerial Decree No. 151 of 2024. The initiative seeks to provide targeted incentives to industrial companies expanding within the Economic Zone, particularly those dedicating part of their output to export markets while meeting domestic demand. It also encourages the growth of feeder industries and local production inputs, thereby strengthening industrial integration and reducing import dependency.
