Arab Finance: China-based appliance manufacturer Vanward has broken ground on the $12 million second phase of its Vanward Egypt for Home Appliances plant in the Sokhna Industrial Zone, according to a statement from the General Authority for the Suez Canal Economic Zone (SCZONE).
Covering approximately 13,300 square meters within industrial developer TEDA-Egypt’s area, this phase targets expanding both gas water heater and component production and creating more than 300 jobs. It will increase the plant’s manufacturing and assembly capacity, strengthening its ability to serve domestic and export markets.
The second phase targets annual production capacity of two million water heater components and 500,000 complete units. Chairperson of Vanward Home Appliances Lu Siyi said the investment would expand smart manufacturing operations and support the company’s ambition to establish the plant as a major gas water heater manufacturing hub for the Middle East and North Africa.
She added that Egypt’s strategic location and industrial capabilities, together with support from the Egyptian government and SCZONE, reinforced the company’s confidence in expanding its investments.
The project’s first phase began operations in January 2026, producing water heater components and parts locally. The second phase will broaden component manufacturing and add capacity to assemble complete water heaters, with some output allocated to the Egyptian market and exports targeting the Middle East, North Africa, and Europe.
For his part, Ahmed Gamal, SCZONE’s Vice Chairman for the Southern Zone, described the expansion as a further step in economic and industrial cooperation between Egypt and China.
He said the project’s progression from establishment to operations and expansion demonstrated Sokhna’s appeal to Chinese investors across different industries and its ability to translate its resources into investment and production opportunities.
Gamal also added that the project supported deeper local manufacturing, technology localization, and higher value-added production, while creating jobs and developing the skills of Egyptian technical workers.
