• China’s CJN to build $1B phosphate chemical complex in Egypt’s SCZONE

• Three-phase project to start in 2026, targeting fertilizers, PPA, and battery materials

• Complex to create 10,000 jobs, leverage Egypt’s vast phosphate reserves

China’s Kunming Chuan Jin Nuo Chemical (CJN) has signed an agreement with Egypt’s El Sewedy Industrial Development to build a $1 billion integrated chemical complex for phosphate products in the country, the firms said on Thursday.

The complex will be built on a 905,000-square-metre site in the Sokhna industrial zone within the Suez Canal Economic Zone (SCZONE), according to details announced at the signing ceremony attended by Prime Minister Mostafa Madbouly.

The project will be carried out in three phases. The first, due to start in 2026 with commercial operations planned for 2028, will focus on adding value to Egyptian phosphate ore through the production of phosphoric acid and fertilizers, including diammonium phosphate (DAP) and triple superphosphate (TSP), each with a planned annual capacity of 300,000 tons.

The second phase, set to begin in 2029 and be operational by 2031, will expand output to high-purity phosphate chemicals. These include purified phosphoric acid (PPA) for industrial- and food-grade uses, and monopotassium phosphate (MKP), both of which will be produced in the Middle East for the first time.

The third phase, starting in 2032 with commercial operations expected in 2034, will target battery materials used in electric vehicles, including lithium iron phosphate (LFP) and lithium dihydrogen phosphate.

The project also includes a research and development center specializing in phosphate-based chemical technologies. Planned to launch alongside the first phase, the center aims to support technology transfer and build Egypt’s capacity in high-value chemical manufacturing.

The complex is expected to generate around 10,000 direct and indirect jobs. Most of its output will be targeted at markets in South Asia, the Middle East, Africa and South America.

According to May 2024 data from the World Population Review, Egypt holds the world’s second-largest phosphate reserves at an estimated 2.8 billion tons, behind Morocco, and produces more than 16 million tons of phosphate ore annually.

Walid Kéfi