The Suez Canal Economic Zone (SCZONE) announced it has signed an agreement with Chinese iron ore producer Wuan Xinfeng to invest up to US$297 million in an electric arc furnace plant to produce hot-rolled steel coils (HRC).

This new facility will mark the second HRC plant in Egypt, complementing an existing one owned by local steel producer Ezz Steel.

Moreover, in November of the previous year, SCZONE inked a US$15.6 billion deal with Chinese investors encompassing 11 projects spanning manufacturing and hydrogen energy, including terminals and cargo areas, as well as a composite steel plate factory with a capacity of 1.8 million tons per year.

This project will bolster the North African steel sector and has embarked on a new investment venture.