SCZONE signs US$100M deal with Alpha Smart for 500,000 square metre factory complex in Sokhna

EGYPT – The Suez Canal Economic Zone has signed an EGP 5 billion (approximately US$100 million) agreement with Alpha Smart to build a 500,000 square metre factory complex in Sokhna targeting packaging, engineering, electronics, and e-commerce logistics.

The project is divided into two phases of 250,000 square metres each and is expected to generate more than US$150 million in additional industrial investments, while creating around 5,000 direct jobs and over 7,000 indirect opportunities. 

Designed as a model of industrial efficiency, the complex will feature fully equipped factory units ready for operation within 90 days, supported by an integrated logistics zone with warehouses and a global distribution centre.

Packaging and Logistics at the Core

The complex will target the packaging sector alongside engineering, light electronics, food and agro-processing, light chemicals, automotive components, household appliances, and e-commerce logistics. 

For packaging manufacturers, Sokhna’s strategic location adjacent to Sokhna Port and proximity to global trade routes offers access to export markets across Europe, the Middle East, and Africa. 

The integrated logistics zone with warehouses and a global distribution centre will serve as a consolidation hub, reducing freight costs and transit times for packaging materials shipped to regional customers.

Complementary facilities include a business hotel, international restaurants, a business club, sports amenities, and a digital administrative hub with co-working spaces.

Phased Implementation

Implementation will be completed over six years, with the first phase delivering infrastructure, utilities with 25 MW capacity, and half of the industrial units by year two. The second phase will expand logistics and services. 

Flexible contracting options, ranging from long- and short-term leasing to financing and commission-based management, will support investor participation.

Strategic Vision

Walid Gamal El-Din, Chairperson of SCZONE, emphasised that the success of the ready-made factory model in Sokhna has already encouraged expansions and new investments, positioning the zone as a premier industrial and logistics hub. 

He noted that the zone’s strategic integration with Sokhna Port enhances Egypt’s efforts to localise industry, boost exports, and strengthen supply chain resilience.

When Factories Come Ready-Made

A factory unit ready for operation in 90 days collapses the timeline for packaging manufacturers entering the Egyptian market. 

Sokhna’s plug-and-play model turns site selection from a multi-year delay into a quarter-long process. For packaging investors, speed to market is competitive advantage.

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