Egypt’s SCZONE signs US$40M deal with Türkiye’s HIPER Plastic for recycling project in Qantara West

EGYPT – The Suez Canal Economic Zone (SCZONE) has inked a US$40 million (EGP 2 billion) agreement with Türkiye-based HIPER Plastic to establish a pioneering recycling facility in the Qantara West Industrial Zone.

The deal was signed by Waleid Gamal El-Dien, Chairman of SCZONE, during the authority’s investment roadshow in Türkiye, which is aimed at strengthening trade and industrial cooperation between the two countries.

The project, set to be developed across 100,000 square meters in two phases, will generate around 700 direct jobs.

HIPER Plastic’s facility will focus on recycling polyethylene terephthalate (PET), a common material used in plastic packaging, as well as producing polypropylene (DOTP) and high-density polyethylene (HDPE) through advanced, eco-friendly processes designed to achieve zero emissions.

“This partnership underscores SCZONE’s strategy to attract integrated industrial clusters that support both economic growth and environmental sustainability,” said Gamal El-Dien.

He noted that Qantara West has already emerged as a competitive hub, with 41 projects established to date across industrial, service, and logistics sectors, representing total investments of US$1.093 billion and creating more than 56,000 direct jobs.

Egypt has been actively positioning SCZONE as a regional industrial powerhouse, leveraging its strategic location along the Suez Canal, a vital maritime artery handling about 12% of global trade.

Over the past five years, the zone has focused on diversifying its portfolio to include logistics, green hydrogen, petrochemicals, and now, large-scale recycling initiatives.

HIPER Plastic’s investment comes at a time when Egypt is intensifying efforts to tackle plastic waste and align with global climate commitments.

The country produces an estimated 970,000 tonnes of plastic waste annually, according to UN Environment Programme figures, with recycling rates still relatively low.

The entry of major international recyclers such as HIPER is expected to accelerate progress toward a circular economy and reduce reliance on virgin plastics.

The deal also reflects strengthening economic ties between Egypt and Türkiye, which have seen bilateral trade volumes surpass US$7 billion in 2023.

Analysts suggest that more Turkish investments could follow, particularly in manufacturing, renewable energy, and logistics, as Egypt seeks to consolidate its role as a regional gateway for African and Middle Eastern markets.

With sustainability and job creation at its core, the HIPER Plastic project positions Qantara West as a rising model of green industrialization in the region.

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