China’s XinFeng Steel to build $10 billion industrial complex in Egypt

Chinese company XinFeng Steel plans to invest $10 billion in the creation of an integrated industrial complex in Egypt focused on the production of automotive steel, servicing the energy and infrastructure sectors, and precision engineering. This was reported by Zawya.

The project is considered one of the most anticipated industrial investments in the country’s steel sector. The complex is expected to have an annual production capacity of about 10 million tons. It will create 15,000 direct jobs and more than 85,000 indirect jobs, and will involve the transfer of advanced technologies and the deepening of industrial value chains.

Egypt’s Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir noted that the project is in line with the ministry’s strategy to localize the production of automotive components by using the country’s iron ore resources.

According to him, the government seeks to reduce import costs and create a strong industrial base capable of meeting the needs of the domestic market and simultaneous exports. El-Wazir emphasized the government’s commitment to provide the project with all the necessary support and ensure access to key facilities in the energy, water, and logistics sectors.

It should be recalled that last fall, the Egyptian government announced a new package of incentives to support and expand local production of rolled products – cold-rolled, galvanized, and pre-painted steel sheets and coils. These products are critical to key sectors such as household appliances, automotive, construction, and medical equipment. The incentives are designed to reduce lead times, lower initial costs, and mitigate risks for investors.