Port Said for Engineering Works to Build $80 Million Aluminum Foil Factory in SCZone

Port Said for Engineering Works, a subsidiary of the Suez Canal Authority, has announced plans to construct an $80 million aluminum foil factory in the Suez Canal Economic Zone (SCZone) in partnership with an undisclosed Chinese investor, according to Al Borsa. The feasibility studies for the project have recently been approved, and construction is expected to begin in the first quarter of 2025.

The factory's initial production capacity will be 60,000 tons per year, with plans to increase to 100,000 tons by the end of its first operational year. The new facility aims to address the growing demand for aluminum foil in Egypt, which the Industry Ministry estimates is valued between $120 million and $140 million annually. This translates to approximately 46.7 million tons of foil each year, according to Sherif Abdel Moneim of the Cairo Chamber of Commerce's home appliances division.

Egypt was once a pioneer in aluminum foil production but currently has no active foil factories due to financial difficulties and rising costs of materials and energy, as noted by Mohamed El Mohandes, head of the Chamber of Engineering Industries. This has led to a reliance on imported foil, primarily from China. Between 2014 and 2023, Egypt spent $512 million on aluminum foil imports, a cost the government hopes to reduce by boosting domestic production.

Additionally, Egypt Aluminium has announced a separate $100 million project for a foil production line with an annual capacity of 50,000 tons. This initiative may be supported by German technology provider Achenbach, further strengthening local production capabilities in the sector.