Red Sea National Petrochemicals Company and China National Chemical Engineering Co., Ltd. (CNCEC) signed a non-binding framework agreement to implement a petrochemicals project in the Suez Canal Economic Zone (SCZone), according to a statement.

The signing ceremony took place in Beijing, reflecting the strategic partnership between Egypt and China.

The project is one of Egypt's most prominent future projects in the chemical industry.

Ibrahim Abdelkader Mekky, Chairman of Egyptian Petrochemicals Holding Company (ECHEM), highlighted that the deal marks a milestone on the road to executing a promising project that will enhance Egypt's export capacity and create broad development opportunities.

He noted that CNCEC is willing to contribute to the project's capital by arranging financing covering up to 85% of the value of the engineering, procurement, and construction (EPC) contract.

The Red Sea project enjoys significant competitive advantages, most notably its strategic location near the Suez Canal and the availability of production unit licenses, according to Mekky.

The chairman indicated that these advantages make it highly attractive for investment, especially in light of the increasing global demand for products such as polyethylene and polypropylene.

He added that cooperation with CNCEC is witnessing rapid development, as three major contracts were signed this year with TCC, a subsidiary of the Chinese group, at a combined value of nearly $1 billion.

These agreements include projects to produce soda ash, silicon, and bioethanol, as part of Egypt's efforts to reduce dependence on imports and localize strategic industries.