Egypt is in discussions with Chinese aluminium producer Henan Zhongfu Industrial, a part of Henan Yulian Energy Group, to establish a $2 billion aluminium production complex in the East Port Said Industrial Zone within the Suez Canal Economic Zone (SCZONE).

The facility will span more than one million square metres and is expected to create around 3,000 direct jobs, targeting employment in Sinai and Canal region cities, according to a statement issued by SCZONE.

The proposed project, and a potential collaboration with Egyptalum was discussed during a meeting between Prime Minister Mostafa Madbouly and Henan Yulian Energy Group Chairman Cui Hongsong on Saturday.

Madbouly said the government is prepared to provide support for the project, highlighting its alignment with Egypt’s strategy to localise heavy industry and expand export-oriented manufacturing.

Cui said the facility will deploy advanced technologies to produce aluminum sheets for beverage cans, battery foils, and high-grade plates for the automotive, aerospace, and railway industries.

SCZONE Chairman Walid Gamal El-Din said the project would be the first of its kind in East Port Said and aims to bridge Egypt’s production gap in high-value aluminium products.

Deputy Prime Minister for Economic Affairs Hussein Issa said the project could support downstream industries by supplying key aluminium inputs.

Project timelines weren’t disclosed.

Listed on the Shanghai Stock Exchange, Henan Zhongfu has an annual production capacity of 750,000 tonnes of electrolytic aluminium including 500,000 tonnes of green hydropower aluminium and 250,000 tonnes of thermal power aluminium), 690,000 tonnes of deep processing, 150,000 tonnes of carbon, 900,000 kilowatts of electricity, and 2.25 million tonnes of coal, according to the company's website.

(Writing by Eman Hamed; Editing by Anoop Menon)

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