Egypt is in discussions with China's Henan Zhongfu Industrial to establish a $2 billion aluminium production complex in the Suez Canal Economic Zone, as part of efforts to expand industrial output and boost exports.

The proposed facility will be located in East Port Said and will cover more than one million square metres, according to Egyptian officials.

It is expected to create around 3,000 direct jobs, with a focus on employment in the Sinai Peninsula and Suez Canal cities.

The project was discussed during a meeting between Prime Minister Mostafa Madbouly and the company's chairman, identified in official statements as Cui Hongsong.

The meeting was also attended by senior government officials, including those overseeing economic policy and the economic zone.

Egypt's government said it would support the investment, noting that it aligns with its strategy to expand heavy industry and promote export-oriented manufacturing.

Officials said aluminium products are key inputs for sectors such as packaging, transport, and construction, and that the project could support downstream industries by supplying locally produced materials.

The facility is expected to manufacture products including aluminium sheets for beverage packaging, battery components, and materials used in the automotive, aviation, and railway sectors.

Walid Gamal El-Din, head of the economic zone, said the project would be the first of its kind in East Port Said and could help address gaps in high-value aluminium production.

Egypt has in recent years stepped up efforts to attract foreign direct investment into manufacturing, particularly in strategic sectors, as it seeks to increase exports and reduce import dependence.

The Suez Canal Economic Zone has been positioned as a key hub for this strategy, offering access to global shipping routes and multiple trade agreements covering markets in Africa, the Middle East, and Europe.

Henan Zhongfu, which is listed in Shanghai and exports to dozens of countries, said the planned investment forms part of its broader international expansion.