China’s CJN, El Sewedy to build MENA’s largest phosphate plant in Egypt’s Sokhna
Egypt’s Prime Minister Moustafa Madbouly witnessed the signing of a $1 billion contract on Thursday to build one of the Middle East’s largest specialised phosphate chemical complexes in the Sokhna Industrial Zone within the Suez Canal Economic Zone (SCZONE).
The agreement was signed between El Sewedy Industrial Development and China’s Kunming Chuan Jin Nuo Chemical Co Ltd. (CJN). The project, located within the integrated industrial city Sokhna 360, will be implemented in three phases and is expected to create around 10,000 direct and indirect jobs. The majority of the output will be exported to markets in South Asia, the Middle East, Africa, and South America.
Phase one, starting in 2026, is scheduled for commercial operation in 2028 and will produce phosphoric acid and DAP and TSP fertilizers at 300,000 tons each per year. Phase two, starting in 2029 and operating by 2031, will focus on high-purity phosphate chemicals, including food-grade purified phosphoric acid and mono-potassium dihydrogen phosphate, products introduced for the first time in the Middle East. The third phase, launching in 2032 and operating by 2034, will target new energy materials for battery production, including lithium iron phosphate (LFP) and lithium dihydrogen phosphate, positioning Egypt as a regional hub for battery materials.
Prime Minister Madbouly described the project as a milestone for the SCZONE, emphasising its role in strengthening Egypt’s industrial base, boosting local production capacity, and supporting national exports. SCZONE CEO Waleid Gamal El-Dein highlighted the zone’s direct integration with Sokhna Port, which will streamline logistics and facilitate fast access to international markets.
CJN Chair Qiuhan Huang said Egypt was chosen for its logistical advantages, phosphate reserves, and competitive industrial environment, noting the project is the company’s largest overseas expansion. A dedicated research and development centre will be launched with the first phase to support industry localisation and innovation in phosphate-based chemical technologies.
Attribution: Amwal Al Ghad English
Subediting: Y.Yasser