Egypt Attracts $300 Million from China for First Wind Turbine Factory

SadaNews - The Chinese Sany Group plans to invest over $300 million to establish the first factory for producing wind turbines and components in Egypt, within the Suez Canal Economic Zone, according to a government official to "Al-Sharq", in a move that supports Cairo's efforts to localize clean energy industries and enhance industrial exports.

The government official, who requested anonymity due to the sensitivity of the information, revealed that "the first phase of production at the factory will be dedicated to supplying part of the needs for a new wind energy project in the northern Gulf of Suez, with a capacity of 1000 megawatts." He added that "the main components will be temporarily imported from China until local production lines are completed and operational."

Reducing the Import Bill

The project represents an additional step within Egypt's strategy aimed at raising the contribution of renewable energy to the electricity mix to over 42% by 2030, and then to exceed 60% by 2040. These goals require expansion in wind and solar energy projects, alongside developing local supply chains that reduce reliance on imports, which will reflect on lowering the energy import bill that surged to $20 billion last year.

The official pointed out that the new factory "is part of a government plan aimed at deepening local manufacturing of renewable energy components, reducing the import bill for equipment, and alleviating pressure on foreign currency, coinciding with the acceleration of clean electricity projects in the country."

According to the latest available foreign trade data, Egypt's bill for importing complete wind turbines and their main components exceeded $235 million during 2024.

Transforming Egypt into a Regional Exporter

Egypt relies on the Suez Canal Economic Zone as a key platform to attract foreign investments and enhance exports to African and Arab markets, benefiting from its strategic location at one of the most important global trade routes. "Al-Sharq" reported that the zone has witnessed increasing flows of industrial investments in recent years, while the supervising authority aims to increase its revenues by 20% during the fiscal year 2025-2026.

The Chinese project comes as part of a growing interest from Chinese companies in industrial expansion in Egypt, after the government previously negotiated with Chinese companies to localize solar energy component manufacturing through significant investments, as part of its efforts to transform the country into a regional hub for new energy industries.

If implemented as planned, the Sany factory is expected to place Egypt in a prominent position within the value chain of the wind turbine industry, not only as a consumer of equipment but also as a potential center for assembly, manufacturing, and export, the government official said, at a time when the region is experiencing rapid growth in demand for renewable energy projects.