Chinese power and fiber optic cable manufacturer, Hengtong, is embarking on a significant venture in Egypt as part of a collaboration with the Suez Canal Economic Zone (SCZONE). This endeavor involves the establishment of a production facility for fiber cables and entails a substantial investment of USD18 million. The plant, which will be situated in the TEDA-Egypt zone, is anticipated to have a capacity of manufacturing up to 2 million kilometers of fiber cable.

The primary objective of this investment agreement is to facilitate Hengtong's expansion, enabling the company to meet its contractual obligations in various sectors. These include the production of optical cables, optical distribution networks (ODN), visual communication engineering, optical ground wire (OPGW), wiring, energy engineering contracting services, and offshore optical cable operation and maintenance services, as per the official statement released by the SCZONE.

The initial phase of this ambitious project is already underway, with Hengtong channeling an initial investment of USD6 million into an area spanning 5,904 square meters. This phase is expected to generate around 100 direct employment opportunities, thereby contributing to local economic development. Hengtong's commitment extends beyond fiber cable production; the company is set to diversify its offerings to include marine cables and maintenance services. Additionally, they plan to venture into cutting-edge technologies such as the Internet of Things (IoT), big data, and E-commerce, reflecting their forward-looking approach to business.

Furthermore, Hengtong's engagement in starting materials and new energy showcases their commitment to sustainable and innovative solutions. This strategic move not only reinforces their foothold in the cable manufacturing industry but also aligns with global trends toward cleaner, more efficient energy sources.

The collaboration between Hengtong and SCZONE signifies the continued expansion of Chinese investments and business operations into Egypt, further strengthening economic ties between the two nations. It also underscores the importance of the Suez Canal Economic Zone as a strategic location for international companies seeking growth opportunities in Egypt and the broader region. Hengtong's multi-faceted investment is poised to foster technological advancement, create job opportunities, and contribute to the development of the local and national economies while enhancing Egypt's position in the global telecommunications and energy sectors.