China’s US$2B Egypt aluminium hub to supply beverage can sheet to Africa, Europe

EGYPT – China’s Henan Zhongfu has proposed a US$2 billion aluminium complex in Egypt’s Suez Canal Economic Zone to produce sheets for beverage cans, battery components, and automotive parts, targeting packaging manufacturers across Africa, the Middle East, and Europe.

The facility, located in East Port Said, would span more than one million square metres and create around 3,000 jobs.

Walid Gamal El-Din, head of the economic zone, said the project would help address gaps in high-value aluminium production.

The meeting between Prime Minister Mostafa Madbouly and Henan Zhongfu chairman Cui Hongsong confirmed the government’s full support for the investment.

What This Means for Packaging

For beverage can manufacturers serving Coca-Cola, Pepsi, and regional bottlers, a local source of aluminium sheet in Egypt would dramatically reduce shipping distances and lower transport costs.

Currently, much of the aluminium sheet used in Africa is imported from the Middle East or Asia, with lead times stretching weeks and freight costs volatile.

A local supplier would provide predictable supply chains, shorter lead times, and reduced exposure to global shipping disruptions.

Aluminium cans are the most recycled beverage packaging globally, with recycling rates of 75 percent compared to 47 percent for PET bottles and 42 percent for glass bottles.

Recycling aluminium saves up to 95 percent of the energy required for primary production, generating correspondingly lower carbon emissions.

If Henan Zhongfu integrates recycled content from post-consumer can collection networks, the facility could supply can sheet with significantly lower embedded carbon.

Regional Recycling Rates

Sub-Saharan Africa achieves a 60.6 percent recycling rate for aluminium cans, while the Middle East and North Africa reaches 58.7 percent.

However, formal smelting capacity remains limited, meaning much collected scrap is exported for processing elsewhere.

A large-scale smelting operation in Egypt could retain value within the region, create stable demand for recycled aluminium feedstock, and formalise informal collection networks.

Strategic Positioning

Henan Zhongfu, a Shanghai-listed company with annual capacity of 690,000 tonnes of processed aluminium, exports to more than 45 countries.

The Egyptian facility would leverage the Suez Canal Economic Zone’s access to shipping routes and trade agreements covering Africa, the Middle East, and Europe.

When Packaging Gets a Local Supply Chain

For beverage can manufacturers, aluminium sheet is a precision input requiring specific thickness, alloy composition, and surface finish.

A US$2 billion plant designed to produce that exact specification would reduce lead times, lower freight costs, and provide supply chain security that imported material cannot match.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE