The Suez Canal Economic Zone (SCZone) has signed a $34 million contract with China National Chemical Engineering Corporation (CNCEC) to build a facility in the Sokhna Industrial Zone that will produce steel structures, pipes, and equipment used in sodium carbonate (soda ash) plants. The project, covering 100,000 square meters, marks a strategic move to localize soda ash production in Egypt, reducing import dependence and strengthening the supply chain for downstream chemical, petrochemical, and refining industries.
Project details and capacity
The new facility will manufacture steel structures, carbon steel and stainless steel prefabricated pipes, and non-standard equipment. Its designed annual capacity is 20,000 tons of steel structures and 400,000 diameter-inches of prefabricated pipes. These components are essential for building soda ash production plants, which in turn supply a wide range of industrial sectors including chemicals, petrochemicals, oil refining, and tire manufacturing.
Integrated two-phase investment
This contract is the first of two integrated projects. The second, planned for the Sokhna port area with an estimated $250 million investment, will cover 200,000 square meters and include a 350-400 meter quay. It will focus on manufacturing chemical and petrochemical equipment such as carbon steel, low-alloy steel, stainless steel, and clad plate towers, vessels, and reactors for petrochemicals, power generation, mining, and pharmaceuticals. The two projects are designed for logistical synergy between the industrial zone and the port.
Strategic importance for Egypt
SCZone Chairman Waleid Gamal El-Din stated that the soda ash localization project aligns with presidential directives to reduce imports and add value to local industries. Soda ash is a critical input for chemicals, petrochemicals, oil refining, pre-fabricated stainless steel operations, and tire production. The SCZone offers full support and incentives, leveraging free trade agreements to access regional and global markets.
What buyers should watch
Overseas buyers of soda ash, chemical equipment, and steel structures should monitor this development as it signals Egypt's intent to become a regional manufacturing hub. The integrated port-industrial zone setup will facilitate logistics for large-scale equipment and raw materials. Companies sourcing soda ash or related industrial components may find new supply opportunities as the project progresses, with the second phase expected to begin construction in 2026.
Source: Read the original report | Published: January 26, 2026