Xinxing Cathay International Group wants to invest USD 1.08 bn in two factories in the Suez Canal Economic Zone (SCZone), Xinxing head Jia Shirui said during a meeting with Prime Minister Moustafa Madbouly and SCZone head Walid Gamal El Din, a cabinet statement said yesterday. Xinxing initially proposed a USD 2 bn project in March, but the company now plans to build a plant half its original size..

This is where Xinxing’s current investment plans for the SCZone currently stand:

#1- A steel factory: The Chinese firm will invest USD 930 mn into the development of the steel factory with an annual production capacity of 700k tons of hot-rolled coils and 300k tons of hot-rolled sheets. Some 80% of these products will be exported. The company originally planned to spend USD 1.8 bn on the project.

#2- A cast iron pipe factory: Xinxing is looking to pump USD 147 mn into the establishment of a factory producing cast iron pipes with an annual production target of 250k pipes per year. Nearly 80% of the products will be exported, with the remaining sold to the local market

What’s next: The SCZone will provide the final contracts for the two projects as soon as possible, Gamal El Din said. The statement did not provide any indication of the timeline for the establishment of the factories.

More in the pipeline: Xinxing has additional operations in the medical equipment industry, for which it wants to establish further factories, Gamal El Din said, without providing any further details.

ICYMI- Chinese and Egyptian companies signed a raft of agreements on the side of China’s Belt and Road Forum last week that could see up to USD 15.5 bn invested in energy and manufacturing projects in the SCZone.

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