A landmark meeting between Egypt’s Minister of Local Development Manal Awad and representatives from Chinese company New Hope has outlined plans for a $100 million feed production factory in Egypt. This move aims to strengthen economic ties between the two nations while enhancing local agricultural and industrial capabilities.
Strengthening Egypt-China Relations Through Investment
In a key meeting held on Wednesday in Egypt’s Administrative Capital, Minister Manal Awad welcomed a high-level delegation from New Hope, one of China’s largest agriculture and renewable energy companies. The purpose of the discussion was to explore the establishment of a $100-million feed factory complex in Egypt, aimed at bolstering local agricultural industries and fostering Chinese investment in the country.
The session also focused on broader opportunities for localizing Chinese industries within Egypt, particularly in agricultural manufacturing and renewable energy. Minister Awad emphasized that such investments would not only enhance Egypt’s industrial landscape but also serve as a platform for deepening economic, trade, and cultural cooperation between Egypt and China.
New Hope’s Growing Influence in Egypt’s Agricultural Sector
Liu Chang, Chairwoman of New Hope’s Board of Directors, led the delegation from the company, which included CEO Tao Yu Ling, Senior Advisor Wang Wei Yong, and General Manager for Egypt Shao Wen. The company is already a major player in the global feed and food chain production sectors, with several successful international investments. However, Liu Chang highlighted that Egypt remains one of New Hope’s most important investment targets, particularly in the fields of feed production and fish farming.
New Hope’s current operations in Egypt include the establishment of five feed production factories in governorates like Menoufia, Beni Suef, Beheira, Dakahlia, and Gamasa. These plants currently produce 650,000 tons of feed annually, accounting for around 10% of Egypt’s total feed production. The company’s initial investments in these projects have reached $70 million. However, the proposed $100 million factory expansion will significantly boost production capacity to one million tons per year.
Fostering Employment and Technological Growth
Liu Chang also emphasized New Hope’s commitment to supporting Egypt’s workforce. With 94% of the workforce in the company’s existing plants being Egyptian, New Hope is working to further integrate local talent into its operations. As part of the expansion, New Hope plans to enhance Egyptian expertise in feed production technologies, providing a platform for local employees to learn from China’s advanced agricultural techniques.
In addition to providing direct employment opportunities, the company’s investment is expected to foster technological innovation and increase the skill levels of workers in Egypt. This aligns with Egypt’s broader goals of boosting local industry and creating sustainable job opportunities in sectors like agriculture and food production.
Strategic Investment to Meet Growing Demand
The Egyptian agricultural sector has been growing rapidly, driven by an increasing demand for feed and related products. As the country continues to expand its agricultural output, the feed production industry is becoming increasingly vital to ensure the supply chain is well-equipped to support the growing livestock and aquaculture industries.
The proposed $100 million feed factory is positioned to play a central role in meeting these demands. Not only will it boost production capacity, but it will also enhance the quality of feed available to local farmers, potentially reducing reliance on imports and improving the sustainability of Egypt’s agricultural ecosystem.
Continued Government Support for Foreign Investment
Both Minister Awad and Liu Chang praised the Egyptian government’s ongoing efforts to create a more conducive environment for foreign investment. From offering land for new projects to easing the procedures for attracting foreign investments, Egypt is positioning itself as an increasingly attractive destination for global players like New Hope.
The government’s support in facilitating investments through favorable tax policies and investment frameworks continues to be a key draw for international companies. Liu Chang noted that New Hope’s success in Egypt is a testament to the positive impact of these policies and their commitment to long-term growth in the country.
