Port Said for Engineering Works, a subsidiary of the Suez Canal Authority, has announced a strategic partnership with an undisclosed Chinese investor to establish an $80 million aluminum foil manufacturing facility in the Suez Canal Economic Zone (SCZone). This development marks a significant step in revitalizing Egypt’s dormant aluminum foil industry, according to a report by Al Borsa.
Recently approved feasibility studies have set the stage for construction to commence in early 2025. The factory is projected to initiate operations with a production capacity of 60,000 tons annually, escalating to 100,000 tons by the terminal year of its initial phase. This capacity is a response to Egypt’s burgeoning aluminum foil demand, presently valued between $120 million and $140 million yearly.
Sherif Abdel Moneim, a spokesperson from the Cairo Chamber of Commerce, highlighted that the country requires approximately 46.7 million tons of aluminum foil annually to meet domestic needs. “This new facility is not just a factory; it’s a cornerstone for re-establishing Egypt’s leadership in the aluminum sector,” Moneim stated in an exclusive comment to the Middle East Observer.
Historically a pioneer in aluminum foil production, Egypt’s industry has faced significant challenges, including financial constraints and increasing material and energy costs. These have led to the closure of local factories, creating a dependency on imports predominantly from China, as explained by Mohamed El Mohandes, head of the Chamber of Engineering Industries. “Reviving our aluminum industry is critical for economic independence and technological advancement,” El Mohandes added.
From 2014 to 2023, Egypt spent about $512 million on aluminum foil imports, a financial drain that the government aims to curtail by enhancing domestic production capabilities. Recent data from the Ministry of Industry underscores the urgency of reducing import reliance, especially given the volatile global aluminum market.
In another promising development, Egypt Aluminium has unveiled plans for a $100 million investment in a separate foil production line with an annual capacity of 50,000 tons. This project is anticipated to leverage advanced technology from German company Achenbach, further solidifying Egypt’s industrial resurgence.
