SCZone Signs Contract for Chinese Garment Factory with Investments worth $28.5 Mln
The General Authority for the Suez Canal Economic Zone (SCZone) announced Tuesday the signing of a contract for the construction of a garment factory for the chinese Shanghai Shengda Company.
The factory will be established in (Abu Khalifa Industrial Zone), west Qantara industrial zone, within the framework of SCZone’s plan to develop its industrial zones and localize the targeted industries within its 2020/2025 vision.
Waleid Gamal El-Dien, SCZone Chairman signed the contract with the Chairman of Shanghai Shengda, Ping Yao.
The project will be built on an area of 83,000 square meters with an investment cost of $28.5 million for the first phase only, as the project will be built in two phases.
The Board of Directors of SCZone approved the project in its meeting, last June, as this project is the first of its kind in the Qantara West Industrial Zone, with investments of $40 million for the two phases, provided that its products are fully exported to the US market with a production capacity of 43 million pieces annually, which in turn contributes to providing 1,200 direct and indirect job opportunities.
“This factory is a step within very ambitious plans for West Qantara and East Ismailia industrial zones, as SCZone exerted a great effort for developing these industrial zones, because of their potential. In addition to the skilled labor compared to the neighboring markets. This project is a ramification of the promotional tour that took place recently last May in the People's Republic of China, which included receiving a letter of intent from the company to work in the west Qantara industrial zone after negotiations took place between the two sides, which culminated in the signing of today’s contract,” Gamal El-Dien, declared.
“We are delighted with this contract, as it is the company's third investment in Egypt in general and the first within SCZONE. We appreciate the depth of the Egyptian-Chinese relations that contribute to strengthening economic cooperation between investment institutions in the two countries. I also appreciate the higher management of SCZONE which is characterized by high efficiency, and respond to all inquiries, as well as the economic climate that SCZONE enjoys, which is remarkable compared to other countries,” Ping Yao said.
It is worth noting that Shanghai Shengda is a Chinese company specializing in the manufacture of ready-made garments and accessories. It has branches in the United States, Egypt, Bangladesh, and Cambodia. The company has many investments in Egypt since 2019, estimated at $15 million.