Chinese Xinxing invests $2 billion in steel plants in Egypt

The Chinese company Xinxing Ductile Iron Pipes intends to invest $2 billion in steel plants in the economic zone of the Suez Canal. Reuters informs about it with the reference to the Egyptian government.

It is planned that enterprises for the production of pipes and steel products, including for export, will be located in the industrial zone in the port of Ain Sokhna, developed by the Chinese company Tianjin TEDA.

As Zawya writes, it is expected that the annual turnover from this project will amount to more than $2.6 billion. It will be implemented in two stages, it is planned to create more than 2 thousand jobs.

Currently, Egypt is struggling to attract foreign investment amid acute shortages of foreign currency and economic pressure. In particular, in March 2023, Hong Kong’s CK Hutchison Holding and China’s Cosco Shipping Ports announced investments in terminals in the ports of Ain Sokhna and Alexandria. In addition, the country’s government announced the intention of China Energy to invest in a large project for the production of green hydrogen in Egypt.

As GMK Center reported earlier, the Omani company Jindal Shadeed Group plans to build a plant for the production of green steel in the special economic zone in Dukm. It is planned that it will have a capacity of 5 million tons per year, green hydrogen and renewable energy sources will be used in production.

Also, the Japanese steel ptoducer Nippon Steel is considering the possibility of large investments in a project for the production of green steel outside its domestic market. Possible sites for the new plant could be Australia or Brazil, where high-quality iron ore and cheaper electricity are available.