CAIRO—The Suez Canal Economic Zone (SCZONE) has secured a new Chinese industrial investment after signing an agreement with Zhejiang Hongda Textile Manufacturing and Processing to establish a textile production facility in the West Qantara Industrial Zone.
The project will involve investments of $20 million and will be developed on a 60,000-square-metre site. The factory is expected to create around 500 direct jobs, with approximately 70% of production allocated to export markets, according to SCZONE.
The investment forms part of a broader influx of Chinese textile and garment manufacturers into Egypt as companies seek competitive production bases with access to European, Middle Eastern and African markets. Egypt’s network of trade agreements, strategic location and improving industrial infrastructure have increasingly positioned the country as an attractive destination for export-oriented manufacturing.
Products manufactured at the new facility are expected to target regional and international markets, reinforcing West Qantara’s growing role as a textile and apparel production cluster within the SCZONE ecosystem.
SCZONE Chairman Waleid Gamal El-Dien said the project reflects continued investor confidence in the zone’s industrial capabilities and export potential. The authority has focused on attracting labour-intensive industries, particularly textiles and ready-made garments, as part of broader efforts to expand manufactured exports, create employment opportunities and deepen local industrial value chains.
The Zhejiang Hongda project is the latest addition to a rapidly expanding portfolio of Chinese investments in West Qantara, which has emerged as one of Egypt’s fastest-growing industrial zones for textile manufacturing.
The investment also underscores Egypt’s growing appeal as a near-shoring destination for Asian manufacturers seeking efficient access to regional and global markets, while supporting the country’s ambition to strengthen its position within international textile and apparel supply chains.
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