Egypt’s Suez Canal Economic Zone (SCZone) has signed a US$34 million agreement with China National Chemical Engineering Company (CNCEC) to begin the first phase of a soda ash production project in the Ain Sokhna Industrial Zone, the government said on Sunday.
The initial phase will establish production lines, equipment, and piping for manufacturing sodium carbonate, commonly known as soda ash. Planned output includes steel structures, prefabricated carbon and stainless-steel pipes, and non-standard industrial equipment, the SCZone said.
The facility will cover 100,000 square metres and is designed to produce 20,000 tonnes of steel structures annually and prefabricated pipes equivalent to 400,000 diameter inches per year. Officials did not provide a timeline for completion.
Soda ash is a key input for the chemical, petrochemical, and petroleum refining sectors. Egypt currently imports its full soda ash requirement, estimated at 300,000–400,000 tonnes annually, costing millions of dollars in foreign currency. The project aims to reduce import dependence, meet domestic demand, and support exports.
CNCEC specialises in chemical and petrochemical engineering. Egypt has signed multiple industrial agreements with Chinese firms in the SCZone in recent years, including projects on phosphate ore processing.
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The soda ash project has been under discussion since October 2025. At that time, presidential spokesman Mohamed El-Shennawy said Egypt would facilitate its implementation to strengthen the petrochemicals sector and reduce reliance on imported raw materials.
Second phase
SCZone and CNCEC also discussed a second phase, projected at US$250 million, which would focus on manufacturing chemical and petrochemical equipment at Ain Sokhna Port. The phase would cover 200,000 square metres and include a quay extending 350–400 metres, with room for future expansion.
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Planned output for phase two includes carbon steel, low-alloy steel, stainless steel, composite sheets, and industrial towers and containers for use in petrochemicals, power generation, mining, and pharmaceuticals.
Officials said the initiative aligns with Egypt’s strategy to achieve self-sufficiency in key industrial materials, reduce imports, and boost exports to US$115.8 billion by 2030. The plan is also expected to support foreign currency inflows, ease pressure on public finances, increase total exports to US$145 billion, and double the contribution of foreign direct investment (FDI) to GDP to 4.4 percent over the next four years.
The government has instructed export councils to prepare measures to increase non-oil exports by 15–20 PERCENT annually through 2030.
Since 2023, the SCZone has attracted around US$13 billion in foreign investment, and authorities estimate that if industrial and logistics activities grow by 10–12% annually, the zone could add US$3–5 billion per year to Egypt’s GDP over the medium term.
The soda ash project represents a key step in Egypt’s broader industrialisation and petrochemical development agenda, aimed at reducing reliance on imports, increasing domestic production, and strengthening the country’s position as a regional manufacturing hub.
