He described it as an important step towards supporting the clean energy transition, strengthening the stability of Egypt’s national electricity grid and increasing its capacity to accommodate a growing share of renewable energy through advanced storage solutions.
The China-Egypt TEDA Suez Economic and Trade Cooperation Zone in Ain Sokhna witnessed the groundbreaking ceremony on Monday for Sungrow Power Suez Energy Equipment’s new factory, which will specialise in advanced energy storage systems.
Minister of Industry Khaled Hashem said the project holds particular significance as the first factory dedicated to manufacturing energy storage systems in the Middle East and Africa. He described it as an important step towards supporting the clean energy transition, strengthening the stability of Egypt’s national electricity grid and increasing its capacity to accommodate a growing share of renewable energy through advanced storage solutions.
The $50 million project will establish a facility for assembling energy storage systems and is expected to create more than 100 jobs, with a focus on employing local talent across manufacturing, production and technical operations.
Hashem said the project’s industrial value extends beyond its production capacity to include training qualified Egyptian professionals, transferring technology and expertise, and developing supporting industries, thereby increasing the value added to the national economy.
He called on Sungrow Power Suez to increase the share of locally sourced components and strengthen cooperation with relevant institutions and research centres to facilitate the transfer of advanced technologies to Egyptian professionals.
The minister noted that Egypt recently launched an updated industrial strategy aimed at establishing a more competitive industrial base, attracting investment in advanced technologies and strengthening the integration of Egyptian industry into global supply chains.
The strategy identifies five industrial groups, including seven priority sectors, alongside enabling industries, strategic sectors, supporting industries, recycling activities and the circular economy.
Hashem said equipment and components used in solar power and new and renewable energy technologies represent one of the most important enabling industries, as they provide essential inputs for a wide range of industrial activities.
He added that Sungrow’s battery storage factory represents an important step towards establishing a local manufacturing base for energy storage systems, strengthening Egypt’s capabilities in this promising field and supporting the country’s expansion in clean energy.
Mostafa Shekoun, Chairman of the Suez Canal Economic Zone, said the project represents an important addition to Egypt’s emerging industries and a step towards localising the production of energy storage systems while supporting the expansion of new and renewable energy projects.
He added that the investment reflects confidence in the Suez Canal Economic Zone’s investment potential, advanced infrastructure and integration between its industrial zones and ports.
Shekoun said the project also demonstrates the depth of the economic and investment partnership between Egypt and China and highlights the role of the TEDA-Egypt industrial developer in attracting high-value-added industrial investments.
The Sungrow project is also linked to strategic renewable energy developments in Egypt, including Scatec’s Energy Valley project. This connection is expected to strengthen integration between renewable power generation and energy storage solutions while supporting Egypt’s efforts to expand clean energy and localise its related industries.
