Egypt inaugurates US$11M Sinai plastics factory producing 55M PP bags annually

EGYPT – Egyptian Prime Minister Mostafa Madbouly has inaugurated the National Sinai for Plastic Industries factory in Bir El-Abd, a EGP 530 million (approximately US$11 million) facility built on a 20,000-square-metre site, producing 55 million woven polypropylene bags annually for cement, sugar, flour, and animal feed packaging.

The factory is the first industrial project in the Bir El-Abd industrial zone and is equipped with advanced production lines imported from India, marking the first time such technology has been introduced to Egypt.

It currently employs 170 workers, 46 percent of whom are from Sinai, reflecting efforts to integrate local communities into development initiatives.

A Catalyst for Industrial Growth

Prime Minister Madbouly described the facility as a tangible step in the state’s strategy to expand industrial development nationwide, particularly in North Sinai, which holds significant untapped potential.

North Sinai Governor Khaled Megawer described the ongoing efforts as part of a broader “battle for development,” noting that rebuilding the region requires sustained momentum following years of security challenges.

The factory specializes in producing woven polypropylene bags, a packaging format widely used for bulk industrial goods such as cement, sugar, flour, and animal feed.

PP woven bags are valued for their strength, moisture resistance, and reusability, making them the standard for heavy-duty packaging across multiple industries.

Export Opportunities and Job Creation

Madbouly highlighted the project’s role in supporting domestic industry, creating jobs, and opening new export opportunities.

With an annual capacity of 55 million units, the factory can supply local cement and flour mills while also positioning Egypt as an exporter of industrial packaging to neighbouring markets.

Hassan Fahmy noted that the project forms part of a wider strategy to stimulate economic activity in Sinai and attract further investment, calling for additional incentives and streamlined procedures, including the establishment of a dedicated investor services centre in Bir El-Abd.

A Development Tour with Multiple Projects

En route to the inauguration, Madbouly inspected upgrades on a 20-kilometre road under the presidential Decent Life initiative and reviewed maintenance on the Qantara East-Arish road.

He also reviewed progress on a 353-kilometre railway linking Bir El-Abd, Arish, and Ras El-Naqab as part of the Arish-Taba logistics corridor, which will facilitate the movement of goods through the national rail network.

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