China’s Kunming Chuan Jin Nuo Chemical (CJN) has signed a $1 billion agreement with Egypt’s El Sewedy Industrial Development to build an integrated chemical complex for phosphate products in Egypt, the companies announced on Thursday.
The complex will occupy a 905,000-square-metre site in the Sokhna industrial zone within the Suez Canal Economic Zone (SCZONE), according to details revealed at the signing ceremony attended by Prime Minister Mostafa Madbouly.
According to Ecofin Agency, the project will be executed in three phases. The first phase, set to begin in 2026 with commercial operations planned for 2028, will focus on adding value to Egyptian phosphate ore by producing phosphoric acid and fertilizers, including diammonium phosphate (DAP) and triple superphosphate (TSP), each with an annual capacity of 300,000 tons.
The second phase, scheduled to start in 2029 and become operational by 2031, will expand production to high-purity phosphate chemicals, including purified phosphoric acid (PPA) for industrial- and food-grade applications, and monopotassium phosphate (MKP), marking the first production of these chemicals in the Middle East.
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The third phase, beginning in 2032 with commercial operations expected in 2034, will focus on battery materials for electric vehicles, such as lithium iron phosphate (LFP) and lithium dihydrogen phosphate.
The project will also feature a research and development center specializing in phosphate-based chemical technologies. Planned to launch alongside the first phase, the center aims to facilitate technology transfer and develop Egypt’s capacity in high-value chemical manufacturing.
The complex is expected to create approximately 10,000 direct and indirect jobs. Most of its output will target markets in South Asia, the Middle East, Africa, and South America.
According to May 2024 data from the World Population Review, Egypt holds the world’s second-largest phosphate reserves, estimated at 2.8 billion tons behind Morocco, and produces over 16 million tons of phosphate ore annually.
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