Egypt is in discussions with Henan Zhongfu Industrial from China to establish a $2bn aluminium production complex to be based out of the Suez Canal Economic Zone as part of its efforts to expand industrial output as well as boost exports.
It is expected to create about 3,000 direct jobs, mostly in the cities along the Suez Canal and in the Sinai Peninsula.
Prime Minister Mostafa Madbouly and the company’s chairman, Cui Hongsong, talked about the project at a meeting.
There were also high-ranking government officials at the meeting, including those in charge of economic policy and the economic zone.
The government of Egypt said it would support the investment because it fits with its plan to grow heavy industry and encourage manufacturing that is focused on exports.
Officials said that aluminum products are important for industries like packaging, transportation, and construction. They also said that the project could help these industries by providing materials made in the area.
The $2bn aluminium production complex is expected to manufacture products like aluminum sheets for packaging drinks, parts for batteries, and materials for the automotive, aviation, and railway industries.
The head of the economic zone, Walid Gamal El-Din, said that this project would be the first of its kind in East Port Said and could help fill in gaps in the production of high-value aluminum.
Egypt has stepped-up efforts in recent years to get foreign direct investment into manufacturing, especially in key areas, as it tries to boost exports and cut down on its reliance on imports.
The Suez Canal Economic Zone is a key part of this strategy because it connects to global shipping routes and has trade agreements with markets in Africa and the Middle East, as well as Europe.
Henan Zhongfu, which is based in Shanghai and sells goods to many countries, said that the planned investment is part of its larger plan to grow internationally.