TEDA is getting another solar power component production complex: Egyptian, Chinese, Bahraini, and Emirati investors signed a land usufruct to set up a USD 220 mn industrial complex for solar energy components in the China-Egypt Teda industrial zone, according to a statement. The project’s production will be used for both local markets and export.

Meet the players: The investors are comprised of Chinese manufacturer of solar components JA Solar, Bahraini PE Infinity Capital, Emirati resources investment firm Global South Utilities, and Egyptian AH Group. The Chinese side will act as the technical investor, while the other partners’ roles in the project were not disclosed.

The details: The industrial complex — dubbed Atom Solar Egypt — will include three factories with a combined production capacity of 2 GW of solar cells — all of which will be exported — 2 GW of solar modules — which will feed the domestic and regional markets — and a 1 GWh energy storage systems plant. The project will be completed within 3 years.

We had an idea this was coming: GSU inked an MoU with JA Solar in November to establish two solar power factories — a solar cells plant and a solar panels plant

Not the first of its kind: Earlier this summer, China’s Sunrev Solar inked a contract with the China-Egypt TEDA trade zone to build a USD 200 mn integrated industrial complex for solar energy components.

REMEMBER- Both complexes align with Egypt’s broader strategy to localize 12 strategic industrial components, which include solar cells, alongside electric motors, control panels, and elevators and others. The strategy aims to not only reduce the country’s import bill — and resultant strain on FX resources — but also to export these components.

There’s more to the story: Chinese solar power component manufacturers have been moving their production facilities to Egypt and the rest of the MENA region as they face pressure in their home market due to ongoing trade wars and geopolitical friction. We dive deeper into this trend in a Going Green published last month — check it out here.

IN OTHER EGYPT UPDATES-

More investors land in Qantara West: A heap of new foreign investments totaling more than USD 140 mn are coming to Egypt’s Qantara West Industrial Zone, with new projects from Chinese, German, and Greek firms landing in the zone, according to statements here, here, and here.

#1- China’s Everfar Textile Egypt is investing USD 130 mn to set up a textile and ready-made garments facility at the Qantara West Industrial Zone, according to a Suez Canal Economic Zone (SCZone) statement. The project aims to produce over 7.5 mn tons of processed fabrics, more than 20 mn meters of garment fabrics, some 3.6 mn ready-made garments, and large quantities of garment accessories annually. All output will be exported, with the factory expected to create more than 3.2k jobs.

#2-Greek textile firm Tzanidakis Miaxah Marinos (Murphy) is setting up a USD 4 mn, 7k sqm ready-made garments factory in Qantara West, marking the first Greek industrial investment in the Suez Canal Economic Zone (SCZone). The facility will export 70% of output and create 1k jobs, according to an SCZone statement.

#3- German home furniture firm Sun Garden will invest USD 7 mn in a new factory for home furnishings, mattresses, and outdoor furniture in Qantara West, marking the first German industrial investment in West Qantara, the Suez Canal Economic Zone said in a statement. The project will create 500 direct jobs and earmark 90% of production for export.

What’s next: The Suez Canal Authority will roadshow in Turkey at the end of September to drum up fresh investment.

DATA POINT- Qantara West has nabbed the majority of Egypt’s foreign investments — hosting 37 projects with a combined investment cost of nearly USD 1 bn. The contracted projects, which cover nearly 2.4 mn sqm, are projected to create 53k direct jobs.

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