Egypt’s Kemet Signs Major Deals with Chinese Firms to Localize Renewable Energy Manufacturing
Egypt’s Kemet has signed two major cooperation agreements and one memorandum of understanding in the field of renewable energy and energy storage with leading Chinese companies, as part of efforts to localize renewable industries and position Egypt as a regional manufacturing hub. The signings were witnessed by Mahmoud Esmat, Minister of Electricity and Renewable Energy, during his official visit to China.
Kemet Chairman Ahmed El Abd signed the memorandum of understanding with Zhang Xin, Chairman of TBEA, a global leader in power engineering and electrical equipment manufacturing, to cooperate on renewable energy systems, localize the electrical power grid connection systems, and establish the first factory to produce inverters in Egypt. This partnership aims to transfer critical technology and expertise to Egypt’s growing renewable energy sector.
El Abd also signed a cooperation agreement with the Chinese group GCL to develop an integrated industrial complex for localizing the manufacturing of solar photovoltaic cells and modules. Spanning 280,000 square meters, the complex will be established with a production capacity of 5 gigawatts at a total cost of $500 million. This facility represents a significant step toward reducing Egypt’s dependence on imported solar panels and components.
In a third agreement, El Abd signed a cooperation deal with Dai Deming, Chairman of Cornex, a Chinese energy storage batteries manufacturer, to establish a $200 million energy storage batteries factory in Egypt. Relying on local industrial inputs, the factory has an annual production capacity of 5 gigawatt-hours and will help support Egypt’s expanding renewable energy infrastructure.
During his visit, Minister Esmat toured the partner factories in China, inspecting production lines, research laboratories, and testing centers. He discussed design, operational, and technical aspects to ensure that the Egyptian facilities replicate the advanced technologies and efficiencies of the Chinese references. Esmat emphasized that Egypt aims to raise local content levels in renewable energy projects to up to 60 percent, while positioning the country as a regional hub for energy equipment manufacturing and power infrastructure development.
These agreements come as part of a broader surge in Egypt-China energy cooperation. Last week, China’s Sungrow agreed to establish a 10 gigawatt-hour battery energy storage system manufacturing plant within the Suez Canal Economic Zone. Spanning 50,000 square meters, the Sungrow facility will be the first in the Middle East and Africa to produce battery energy storage systems, with production slated to commence in April 2027.
Source: egyptoil-gas.com
