The Chinese chemical conglomerate Befar Group (also known as Binhua) has officially launched construction on a $500 million chlor-alkali project in Egypt’s Sokhna Industrial Zone. This ambitious initiative is being developed within the industrial park operated by TEDA-Egypt, part of the Suez Canal Economic Zone (SCZONE), and is set to significantly enhance Egypt’s industrial capacity in the chemical sector.

According to an official press release from SCZONE, the new facility will boast a total production capacity of 100,000 tonnes. The project is structured in two distinct phases, each spanning an area of 200,000 square metres. The first phase, backed by a $300 million investment, is scheduled to be completed within 18 months, while the second phase will see an additional $200 million in funding.

Once completed, this facility will mark a milestone for Egypt, becoming the country’s first green chemical plant. It will utilize a combination of renewable energy sources—such as wind and solar power—alongside electricity and natural gas, to generate the steam required for its operations. This move is part of Egypt’s broader push toward sustainable industrial development.

SCZONE Chairman Waleid Gamal El-Dien emphasized the project's potential to support economic growth, stating that it is expected to create approximately 800 new jobs. He also highlighted the strategic importance of the initiative, which aims to reduce reliance on imports and promote the localization of vital industrial processes. “This project forms a crucial part of an integrated system for mineral extraction from seawater,” he explained, “which also includes the production of bromine and the development of auxiliary industries.”

Yinghui Cai, Vice President of Befar Group, expressed gratitude for the support received from SCZONE, TEDA-Egypt, and other stakeholders involved in the venture. He noted that Befar is already a major exporter to over 100 countries and holds a strong position in China’s chemical industry, especially in the production of chemicals such as allyl chloride, trichloroethylene, and caustic soda.

The agreement for this landmark project was signed during SCZONE’s investment promotion tour, which coincided with the Forum on China–Africa Cooperation (FOCAC) held in September 2024. The collaboration reflects growing economic ties between China and Egypt, particularly in the context of industrial and sustainable development.

Founded in 1968, Befar Group is recognized as a leading player in the global chemical industry, with a diversified product portfolio and a widespread international market presence. This new venture in Egypt is poised to further solidify its global footprint.