Sokhna: The Suez Canal Economic Zone (SCZone) witnessed the groundbreaking ceremony of a pharmaceutical raw materials project by Arab API in the Sokhna industrial zone, with total investments of $165 million, equivalent to about EGP 7.7 billion. The ceremony was attended by Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir, Suez Governor Tarek El-Shazly, SCZone Chairman Walid Gamal El-Din, and representatives of Arab API.

According to State Information Service Egypt, the project will be built on an area of 96,828 square meters and is being developed in partnership with the Suez Canal Economic Zone through its investment arm, the Economic Zone for Investment Company, Gamal El-Din said. He described the project as a strategic step towards localizing medical and pharmaceutical industries in Egypt. The plant will operate in line with international quality standards and will specialize in producing active and inactive pharmaceutical ingredients, intermediates and concentrates, as well as chemicals and additives required by the domestic pharmaceutical industry. The output is expected to support the local market and strengthen Egypt's export capacity to regional markets.

Gamal El-Din further stated that the project forms part of the SCZone's broader plan to localize priority industries aimed at reducing import bills and boosting domestic production of medical and pharmaceutical products. The strategy focuses on vital industries of strategic importance to health security and with high added economic and industrial value. He added that the SCZone is committed to providing all necessary support and facilitation to ensure the project is implemented according to schedule. He highlighted that around 4 million square meters have been allocated within the zone for key projects in the medical and pharmaceutical sector to enhance localization, support national health security, and expand exports to regional markets.

For his part, Arab API Chairman Ahmed Kilany said Egypt currently imports more than 90% of its pharmaceutical raw materials, prompting the company to base the project on two main pillars. The first is deepening industrialization rather than merely localizing production, through building and developing qualified human capital capable of working in this vital sector to ensure long-term sustainability and quality. The second pillar focuses on global manufacturing expansion through cooperation with Egyptian entities, as well as seeking partnerships with several African countries that require such industries. This, he said, would help strengthen regional pharmaceutical supply chains and enhance Egypt's ability to meet African market demand for pharmaceutical ingredients.

Arab API joins a growing portfolio of major medical and pharmaceutical projects in the Suez Canal Economic Zone, including the GENNVAX vaccines and sera project, the IDI pharmaceutical manufacturing project in East Port Said, and the Ateco Pharma intravenous solutions project, reflecting the zone's strategy to localize vital industries, bolster national health security, and support sustainable economic development.