A new industrial complex for producing Formaldehyde and its derivatives will be established in the Sokhna Industrial Zone, part of the Suez Canal Economic Zone (SCZONE), following an agreement between the Main Development Company (MDC), an Egyptian Shareholding Company founded in 2006 to be the main developer of SCZONE, and Al-Ahram Chemicals, Resins and Derivatives Company.

The project, with an overall investment of  $10 million, will be constructed on a 14,000-square-meter plot. It is designed to produce 25,000 tons per year (t/y) of Formaldehyde, Form Urea, and other derivatives like glue and melamine, with production scheduled to begin in early 2027.

In October, SCZONE Chairman Walid Gamal El-Din commented on the agreement: “This project represents a significant addition to the chemical industries within the {SCZONE}, given its strategic importance in the value chain of manufacturing industries, especially in producing intermediate raw materials used in the wood, plastics, and adhesive sectors.”

He added that through such projects, SCZONE aims to localize primary chemical industries and increase the local component, contributing to reducing imports and boosting the competitiveness of Egyptian products.

According to a statement released by the cabinet, the project is expected to create around 150 direct jobs. It is the second project to be signed under an initiative to expand industrial activity in the economic zone for 2025/2026.

The initiative aims to explore and provide investment incentives to industrial companies that seek to expand in the region and direct part of their production for export to international markets while meeting domestic demand.