El sokhna: Prime Minister Mostafa Madbouly witnessed the signing ceremony for the construction contract of a major phosphate chemical industrial complex in the El Sokhna industrial zone of the Suez Canal Economic Zone. The event took place at the government headquarters in the New Administrative Capital, marking a significant development within the integrated industrial city "Sokhna 360".
According to State Information Service Egypt, the contract was signed between El Sewedy for Industrial Development and China's CJN, a global leader in phosphate industries. Present at the ceremony were Mr. Walid Gamal El-Din, Chairman of the Suez Canal Economic Zone Authority; Dr. Nahed Youssef, Chair of the General Authority for Industrial Development; Eng. Ahmed El Sewedy, CEO and Managing Director of El Sewedy Electric; several industrial sector leaders; and the official delegation from the Chinese company. Eng. Mohamed El-Qomah, CEO of El Sewedy for Industrial Development, and Mr. Huang Qiu Han, CEO of CJN Egypt, signed the agreement.
The complex will be constructed on a 905,000 square metre area within Sokhna 360, managed by El Sewedy for Industrial Development. The project, set to be implemented in three phases, involves a total investment of approximately USD 1 billion. It is expected to create around 10,000 direct and indirect jobs, with a focus on exporting its output to South Asia, the Middle East, Africa, and South America.
Phase one of the project, commencing in 2026, aims to start commercial operations by 2028. This phase will focus on maximizing the value of Egyptian raw materials through the production of phosphoric acid and fertilizers DAP and TSP, each with an annual capacity of 300,000 tonnes. Phase two, beginning in 2029 with operations starting in 2031, will produce high-purity specialized phosphate chemicals, including purified phosphoric acid and potassium dihydrogen phosphate. Phase three, set for 2032 with operations in 2034, will expand into new energy material industries, producing battery materials such as lithium iron phosphate and lithium dihydrogen phosphate, reinforcing Egypt's position as a regional hub for electric battery material manufacturing.
Prime Minister Madbouly commended the project as a testament to the success of the Suez Canal Economic Zone in attracting large-scale industrial projects. He highlighted the alignment of this development with the government's plan to enhance local production and support national exports, leveraging improved logistics capabilities.
Mr. Walid Gamal El-Din emphasized that the project represents a new milestone in localizing heavy and specialized industries within the economic zone. He noted that it reflects global partners' confidence in Egypt's supportive investment environment and advanced infrastructure, which position the Sokhna area as a strong industrial and logistics hub. Eng. Mohamed El-Qomah highlighted the project as a significant advancement in specialized industries within Sokhna 360, underscoring the international investors' trust in Egypt's potential to become a regional industrial hub.
Mr. Huang Qiu Han confirmed that Egypt's logistical advantages, phosphate ore reserves, and the Suez Canal Economic Zone's industrial environment were key factors in selecting the location for CJN's largest overseas expansion. The project will include a specialized research and development center to advance scientific research in phosphate-based chemical industry techniques, launching with the first phase to ensure localization within the Egyptian market.