Egypt signed contracts for three industrial projects in the Suez Canal Economic Zone (SCZONE) worth $1.15bn, bringing total investment in the zone to $5.1bn for the first half of the 2025/26 fiscal year(FY). Contents * Polyester and Polymer Complex * Tyre Manufacturing Facility * Health Products and Nonwoven Fabrics The total investment attracted in the last six months has already surpassed the $4.6bn recorded during the entire FY2024/25, SCZONE Chairperson Walid Gamal El-Dien said on Tuesday. The new agreements, signed at the government headquarters in the New Capital, are expected to create 5,400 direct jobs. Prime Minister Mostafa Madbouly, who witnessed the signing, said the projects reflect "growing confidence from major international companies in Egypt's investment climate." He added that the SCZONE's infrastructure and logistical integration between industrial areas and ports support the state's strategy to deepen local manufacturing, increase exports, and provide employment. The contracts were signed between Teda-Egypt and three Chinese firms for projects within the Sokhna Industrial Zone. Polyester and Polymer Complex The largest of the three agreements involves the Xin Feng Ming Group, which will establish an integrated industrial complex for polyester fibres and polymers with investments exceeding $800m. Spanning 400,000 square metres, the project will be implemented in three phases with a total annual production capacity of 1.08 million tonnes, creating 3,000 jobs. Phase one of the project, including the construction, is scheduled to begin in May 2026, with operations starting in the fourth quarter of 2027. While phase two is set to begin in 2028 and become operational in 2029, phase three implementation starts in 2029 with operations commencing in 2030. The first two phases include production lines for POY and DTY polyester yarn with an annual capacity exceeding 360,000 tonnes and expected annual sales of $455m. The third phase aims to complete industrial integration to bridge the gap in raw materials for the Egyptian textile industry, particularly in upstream manufacturing, while directing 50% of production toward regional and international export markets. Tyre Manufacturing Facility A second contract was signed with Chaoyang Langma Tyre to build a complex for heavy truck and passenger car tyres. The project involves an expected investment of $190m on a 200,000 square metre site, providing 1,400 jobs. The project will be executed in two main stages, the first starting in April 2026, focusing on basic construction and a heavy truck tyre (TBR) production line. The second phase, starting in September 2028 for 12 months, will include expansions to the TBR line and the establishment of a passenger car tyre (PCR) line. Targeted annual capacities are 1 million heavy truck tyres and 4.5 million passenger car tyres. Health Products and Nonwoven Fabrics The third agreement with Tongling Jieya Biotechnology involves a $160m industrial complex for health products. Located on 160,000 square metres, the facility will create 1,000 jobs. The company aims for an annual production capacity of 10 billion wet wipes, 2 billion baby diapers, and 100,000 tonnes of nonwoven fabrics using water-jet and hot-air technologies. The project is expected to generate $270m in annual revenue at full operation. Gamal El-Dien stated that these investments represent the targeted industrial diversity for the SCZONE, spanning textile inputs, heavy industries, and advanced health products. He noted that the surge in investment to $5.1bn in record time demonstrates the success of the partnership with Teda-Egypt and the zone's readiness to host large-scale projects.
