Egypt has signed a $500 million cooperation agreement with China’s Suzhou Wuzhong to localize the manufacturing of solar cells and photovoltaic (PV) modules, including the establishment of an integrated industrial complex with a production capacity of 5 gigawatts, the Ministry of Electricity and Renewable Energy said.

The agreement was signed between Egypt’s Kemet and China’s Suzhou Wuzhong, a subsidiary of GCL Group, during a visit by Mahmoud Esmat, Minister of Electricity and Renewable Energy, to GCL’s facilities in China.

Under the agreement, the two companies will establish a fully integrated industrial complex on an area of approximately 280,000 square meters, with total investments estimated at $500 million.

The project aims to localize the production of solar cells and PV modules, increase the local content of manufacturing inputs, and support the transfer and localization of advanced renewable-energy technologies.

The agreement also includes provisions for technology transfer, human-capital development, knowledge sharing, and technological innovation, in line with Egypt’s broader industrial and energy-transition objectives.

Prior to the signing, Minister Esmat held discussions with senior executives of GCL Group, led by Zhuo Gongzhang, reviewing the size and growth potential of the Egyptian market and the government’s plans to expand renewable energy within the national energy mix.

The talks also addressed Egypt’s strategy to support industrial localization, promote domestic manufacturing of electrical equipment, reduce reliance on imports, and encourage private-sector participation in renewable-energy projects.

Both sides explored mechanisms to strengthen cooperation in the manufacturing of solar-energy equipment, particularly in the production of solar cells and PV modules, leveraging the advanced technologies developed by the Chinese company.

As part of the visit, Minister Esmat conducted a field tour of GCL’s photovoltaic cell factories in Jiangsu Province, where he reviewed manufacturing stages, production lines, and quality-control systems. The facilities are expected to serve as a technical reference model for the industrial complex to be established in Egypt.

During the tour, the minister also reviewed technical proposals, project designs, and implementation mechanisms, and visited research and development laboratories and testing centers, gaining insight into the innovative technologies used in solar manufacturing.

Minister Esmat said the agreement represents a pivotal step in positioning Egypt as a regional hub for renewable-energy equipment manufacturing, supporting sustainable-development goals and the country’s plans to transfer and localize advanced technologies.

He emphasized the Ministry’s full support for strategic partnerships that deliver mutual benefits and strengthen local industrial capabilities, noting that the private sector plays a leading role in implementing renewable-energy projects under Egypt’s National Energy Strategy.

Esmat added that Egypt has successfully created an attractive investment climate, opening the door to both local and foreign private investment in the energy sector.

The National Energy Strategy targets increasing the share of renewable energy in Egypt’s energy mix to over 42% by 2030 and 65% by 2040, aiming to maximize the use of natural resources and reduce dependence on fossil fuels.