Published in: SOKHNA360

With a Total Investment of Nearly USD 1 Billion Across All Project Phases: Elsewedy Industrial Developemnt and Kunming Chuanjinnuo Chemical Co. Sign an Agreement to Establish an Integrated Phosphate Chemical Industries Complex in “SOKHNA360” SCZONE Egypt

Today, at the Government Headquarters in the New Administrative Capital, Egyptian Prime Minister Dr. Mostafa Madbouly witnessed the signing of an agreement to establish one of the largest specialized phosphate chemical industrial complexes in the Middle East. The project will be located in the Sokhna Industrial Zone at SCZONE, within the fully integrated industrial city Sokhna 360, managed and developed by Elsewedy Industrial Development.

The agreement was signed between Elsewedy Industrial Development and Kunming Chuanjinnuo Chemical Co. CJN, a global leader in phosphate-based industries, in the presence of:

• Mr. Waleid Gamal El-Dien, Chairman of the General Authority of SCZONE
• Dr. Nahed Youssef, Chairwoman of the Industrial Development Authority
• Eng. Ahmed Elsewedy, CEO and MD of Elsewedy Electric
• Mr. Mohamed Mostafa, CFO of Elsewedy Industrial Development;
• Senior Industry leaders; and the official delegation of CJN.

The agreement was signed by Eng. Mohamed AlKammah, CEO of Elsewedy Industrial Development, and Mr. Huang Qiuhan, CEO of CJN Egypt.

The project is set to occupy 905,000 square meters within SOKHNA360, developed and operated by Elsewedy Industrial Development. It will be executed in three consecutive phases, with total investments reaching approximately USD 1 billion across all stages. The complex will create around 10,000 direct and indirect jobs, and most of its production will be exported to South Asia, the Middle East, Africa, and South America.

The complex will be developed in three sequential phases:

Phase I begins in 2026, with commercial operation expected in 2028. It focuses on maximizing value-added from Egyptian phosphate by producing phosphoric acid and DAP and TSP fertilizers, each with a capacity of 300,000 tons annually.

Phase II begins in 2029, with commercial operation in 2031, and will produce high-purity specialty phosphate chemicals, including purified phosphoric acid for industrial and food-grade applications, and potassium dihydrogen phosphate, products introduced for the first time in the Middle East.

Phase III launches in 2032 with production starting in 2034, extending into new energy materials, specifically electric vehicle battery materials, including lithium iron phosphate and lithium dihydrogen phosphate, further positioning Egypt as a regional hub for EV battery materials.

Eng. Mohamed AlKammah affirmed that the project represents a major leap in specialized industries within “Sokhna 360,” not only due to its investment magnitude but also for deploying technologies that support future industries, particularly battery materials and new energy solutions. He noted that the project reflects global investors’ trust in Egypt’s ability to become a regional industrial hub capable of producing and exporting high-value products worldwide, supporting Egypt’s vision to increase exports to USD 100 billion in the coming years.

Mr. Huang Qiuhan, CEO of CJN Egypt, highlighted that Egypt was chosen due to its exceptional logistical advantages and its vast phosphate reserves, in addition to SCZONE’s ability to provide an industrial ecosystem capable of supporting global supply chains at competitive costs. He confirmed that this project will be the largest overseas expansion in CJN’s history.
The project will also include a dedicated Research & Development Center to advance scientific research in phosphate-based chemical technologies. The center will be launched during Phase I to ensure technology transfer and full industrial localization in Egypt.

It is worth noting that Midgulf, a global trading company that markets industrial fertilizers in over 30 countries, distributing 5–6 million tons annually across India, China, Europe, and Latin America, will be a shareholder in the project and will hold marketing rights for part of the complex’s production.

This cooperation builds on Midgulf’s long-standing contribution to the fertilizer sector. The company has been a leading Egyptian exporter for over 50 years, and in 2022 it executed Egypt’s first-ever shipment of raw phosphate to China in collaboration with CJN—an event that sparked the initial idea for the current project.
Representing Midgulf at the signing were CEO Ahmed Badr and Regional Director Hany Ragab, who reaffirmed that the project represents a significant technological leap for phosphate chemical industries in Egypt and the Middle East.

SOKHNA360, spanning over 10 million square meters, is being developed and designed by Elsewedy Industrial Development in collaboration with international experts. It is built upon thorough studies to ensure the provision of all essential requirements for a sustainable, intelligent, and integrated industrial city that caters to the needs of manufacturers and investors in the region. Strategically located on the Red Sea coast within the Suez Canal Economic Zone, SOKHNA360 occupies a prime position at the center of domestic trade in Egypt and major trade routes connecting Africa, Asia, Europe, and the MENA region. The exceptional project distinguishes itself through its well-balanced, comprehensive, and innovative approach, combining industrial, logistical, residential, commercial, and educational components.

About Elsewedy Industrial Development:
Elsewedy Industrial Development, a subsidiary of Elsewedy Electric (SWDY.CA) listed on the Egyptian Stock Exchange (EGX), is a specialized company in the development of integrated industrial zones in the region. It is committed to sustainable development to serve the community efficiently within the framework of its commitment to ethical responsibility. The company relies on its extensive experience in developing and managing integrated and sustainable industrial cities.

The main services provided by Elsewedy Industrial Development include master planning, consultancy services, infrastructure works, construction management engineering guidance, and designs.
The company also provides its investors with a comprehensive bundle of advanced industrial zone services, essential facilities, outstanding infrastructure, and comprehensive manufacturing facilities.
Elsewedy Industrial Development owns a vast land portfolio in Egypt and Africa, and is the largest land portfolio owned by the industrial development company in Egypt. Elsewedy Industrial Development business in Africa includes the Elsewedy Industrial City (EIC) in the Republic of Tanzania.
The package of Elsewedy Industrial Development’s project in the Egyptian market includes its latest project “SOKHNA360”, which is the first fully integrated industrial city in the region on an area of 10 million sqm, in addition to Sokhna, Sadat, 10th of Ramadan, Sadat, New October, and Borg Al Arab in October.