The Suez Canal Economic Zone (SCZONE) and Nile Recycling have signed an agreement to set up an annex dedicated to polyethylene terephthalate (PET) recycling in Sokhna Industrial Zone.
With an additional investment of $15 million (approx. 742 million Egyptian pounds), the new facility – to be developed by Main Development Company, the development arm of SCZONE – will span 10,000 square metres and is expected to create around 500 direct job opportunities, with a recycling capacity of 20,000 tonnes per year of processed plastic waste. PET is the primary raw material used in the production of food-grade plastic packaging.
The agreement was signed between MDC Managing Director Major General Waleid Youssef and Nile Recycling’s Co-Founder & Executive Chairman Shadi Magdy and Co-Founder & Chief Commercial Officer Saber El Saadany. SCZONE Chairman Waleid Gamaleldien witnessed the signing, which was held at SCZONE’s headquarters in New Administrative Capital.
The project plans to allocate 70% of its output for export to international markets. The remaining 30% will serve the local market, supporting the national goal of increasing industrial exports and enhancing the added value of Egyptian recycled products. This phase is expected to start operating after the completion of the first phase.
“The expansion reflects SCZONE’s ongoing commitment to its strategy of supporting the green economy and promoting sustainability. Recycling projects represent a fundamental pillar in the transition toward a low-emission, clean industrial model. These initiatives contribute to reducing resource waste, creating jobs, and boosting the global competitiveness of Egyptian products,” says SCZONE Chairman Gamaleldien.
“SCZONE continues to attract high-quality investments aligned with Egypt’s direction toward the circular economy. There is a strategic integration of projects within SCZONE’s industrial zones with the national objectives in the environment, manufacturing, and export sectors. The success of Nile Recycling in implementing the first phase laid the groundwork for this expansion and the injection of further investments in the second phase,” he adds.
The first contract was inked in November 2024 to establish a facility that recycles PET bottles into recycled PET (rPET), suitable for food-grade applications. The 12,000 square metre facility, with an initial investment of $20 million, created 500 jobs. Operations are expected to commence in the first half of 2026.
