On 18 October, and on the sidelines of the third round of the Belt and Road Forum currently taking place in Bejing, an investment agreement was signed between the Suez Canal Economic Zone (SCZONE), and the Chinese Hengtong, for the expansion of Hengtong’s project to produce optical cables in the TEDA-Egypt industrial zone in Ain Sokhna. The new expansion is expected to contribute an annual capacity of 2 million core kilometres.
Signing on behalf of SCZONE was its Chairman Waleid Gamal Eldien, and on behalf of Hengtong was Cui Genliang, founder and Chairman Hengtong Group.
The new agreement aims to fulfill contracts concerning optical cables, ODN products, optical communications engineering, OPGW, contracting services for wire manufacturing and energy engineering, and services for operating and maintaining submarine optical cables.
According to SCZONE Chairman, this phase of the expansion will involve investments worth USD18 million and will be spread over 21,000 sq.m. Mr Gamal Eldien said that this phase aims to cater for the needs of the local market and the needs of a number of national projects, including the Decent Life Initiative projects, and the Egyptian Telecom Company’s services.
The current factory located in the industrial zone in Sokhna, was opened by Prime Minister Mostafa Madbouly last March, as part of the opening of Chinese factories inside TEDA-Egypt. It specialises in the production of fibre optic cables and communications and electrical engineering services. The first phase of the project was built over an area of 5,904 sq.m. of land, at an investment of some USD6 million; and provides 100 direct business opportunities.
Hengtong Egypt S.A.E. produces fiber optical cables and ODN products and provides telecommunication and power engineering services.
Hengtong is the largest optical fibre and power cable manufacturer in China; it is ranked among the world’s top three producers of optical fibre communications products, and supplies approximately 25 per cent of the domestic market volume and 15 per cent of the international market volume.
18 October 2023