On the coast of the Red Sea, a new industrial city, the TEDA cooperation zone, attracts 170 enterprises to settle in.

Source: People's Network-People's Daily

Reporter Huang Peizhao

The original title was "China-Egypt TEDA Suez Economic and Trade Cooperation Zone attracts 170 enterprises to settle in the Red Sea and grow a new industrial city"

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In the northeast of the African continent, on the coast of the Red Sea, a fast-growing green new city bears witness to the vitality of China-Africa cooperation.

Driving eastward from Cairo, the capital of Egypt, through the vast Gobi Desert, more than an hour later, a green face gradually emerged in front of me. The green trees and factories are the China-Egypt TEDA Suez Economic and Trade Cooperation Zone (hereinafter referred to as the "TEDA Cooperation Zone").

Since the promotion of China-Egypt cooperation in 2008, the TEDA Cooperation Zone has developed into an industrial park with the best comprehensive environment, the largest investment density, the highest unit output, and the most concentrated Chinese-funded enterprises in Egypt. It has become a landmark for the joint construction of the "Belt and Road". One of the projects.

China-egypt teda suez economic and trade cooperation zone overlook. Photo by Xinhua News Agency reporter Sui Xiankai

Cooperation to build the park

The starting area is fully developed, and the expansion area is rich in bonded, warehousing and other functions.

It is adjacent to the Suez Canal and the Red Sea to the east. It is only 2 kilometers away from Egypt's third largest port, Ain Sukhna; it is more than 120 kilometers away from Cairo to the west, 40 kilometers away from Suez, the capital of Suez, and 60 kilometers away from Egypt's new administrative capital. Open the map, TEDA cooperation zone superior shipping conditions and convenient land transportation conditions on paper.

With the joint efforts of China and Egypt, in 2008, China-Africa TEDA Investment Co., Ltd. (hereinafter referred to as "China-Africa TEDA"), established by Tianjin TEDA Investment Holdings Co., Ltd. and China-Africa Development Fund, formally undertook the construction of the TEDA Cooperation Zone.

Wei Jianqing, deputy general manager of China Africa TEDA, was one of the first young people sent by Tianjin TEDA to work in Egypt. He recalled: "At that time, the vast Gobi, flying sand and rocks, water resources and electricity supply is difficult to guarantee. In 2009, the ministerial meeting of the Forum on China-Africa Cooperation was held in Egypt, when the TEDA cooperation zone will be unveiled, within a year to complete the construction of a number of factories, office buildings and other infrastructure and supporting facilities."

Time is short. Wei Jianqing and other Chinese employees worked closely with Egyptian employees to form a project management team to organize and complete the preliminary design, bidding, project implementation and later decoration.

Gradually, rows of modern workshops, hotels, staff apartments, etc., have sprung up on this land, and the surrounding areas have become green. At present, the TEDA Cooperation Zone has the conditions of water supply and drainage, electricity, access, communication, ventilation and site leveling, so as to realize all-round supporting facilities and facilitate enterprises to settle in.

According to reports, TEDA cooperation to distinguish between the starting area and the expansion area. The starting area has been fully developed, and the four leading industries of new building materials, petroleum equipment, high and low voltage equipment, and machinery manufacturing have basically formed. At the beginning of 2016, the expansion area was officially unveiled. At present, within the scope of 2 square kilometers of the first phase, the infrastructure construction has been fully completed, all kinds of supporting facilities have been improved and operated smoothly, and many enterprises have been put into production. On the basis of the first phase, the second phase of the project further enriches the functions of bonded, warehousing, logistics and finance.

Chinese technicians (second from left) are guiding local employees in the transformer production workshop of Electric Egypt Company. Photo by reporter Huang Peizhao

build industrial cluster

Market-oriented operation, driving the development of supporting enterprises

Walking into the constant temperature and humidity boulder Egyptian glass fiber production workshop, a drawing machine is running in an orderly manner, pulling the hot glass liquid into silk-like delicate fibers, and making rolls of white yarn through several processes.

"These glass fiber products are not only very popular in the African market, but also sold to West Asia and Europe." Jushi Egypt Glass Fiber Co., Ltd. deputy general manager Ma Xinyao said.

According to Ma Xinyao, Jushi Egypt was established in January 2012 and has completed the construction of 4 glass fiber production lines and supporting auxiliary projects. It is the largest glass fiber production base in Africa, filling the technical gap in the glass fiber industry in North Africa and helping Egypt become the world's fourth largest glass fiber producer.

Combining the market advantages and location advantages of the Suez region, the TEDA Cooperation Zone has carried out market-oriented operations to build chemical, building materials, textiles, electrical and electrical, metal processing, construction machinery and other industries according to local conditions. Jushi Egypt is one of the companies that were introduced earlier.

"In addition to convenient transportation, the rich wage sources and good international trade conditions in the TEDA Cooperation Zone are also important factors that attract us to invest." Ma Xinyao said.

Industrial products produced in Egypt are exported to countries in the agreement region and can enjoy zero-tariff free trade policy treatment. Enterprises in the TEDA cooperation zone can also enjoy tax reductions and other concessions. "Since its establishment, Jushi Egypt has generated more than 1.67 billion US dollars of foreign exchange income for the local area, its total assets have also increased by more than four times, and its international market share has been expanding." Ma Xinyao said.

The landing of key industrial projects will further drive more supporting enterprises to settle in and develop, and promote the TEDA Cooperation Zone to continuously improve the industrial chain.

"As a key enterprise in the TEDA Cooperation Zone, we have attracted enterprises in the fields of glass fiber fabric weaving, deep processing, and transportation to settle in the park, forming a stable industrial chain." Ma Xinyao said that the glass fiber industry has also led to the development of wind power generation, pipeline manufacturing, auto parts, home bathroom and other industries in Egypt.

As of the end of July this year, the TEDA Cooperation Zone has attracted 170 companies to settle in, with actual investment exceeding US $2.1 billion, cumulative sales of nearly US $4.9 billion, and taxes and fees paid exceeding US $0.27 billion.

"At present, China's investment in Egypt involves important fields such as energy, power and infrastructure. We look forward to increasing cooperation with China in the fields of medicine, automobile and clean energy in the future, so as to further promote the development of Egyptian industry and achieve mutual benefit and win-win results." Egypt's Suez Canal Economic Zone General Authority Chairman Jamaledin said.

promote talent training

The proportion of Egyptian employees in the cooperation zone reached 91.3, and the team efficiency was improved.

At the TEDA Cooperation Zone Xidian Egypt Company, the first thing that production director Anor does every day is to go to the transformer workshop to check and master the quality and safety of each process.

In 2015, Anor began to work for Xidian Egypt Company, growing from an ordinary workshop worker to a technical backbone.

Shi Chen, general manager of XD Egypt, said that according to the training plan, the enterprise planned to organize key technical personnel to XD China headquarters for training, study and cultural exchanges, which not only improved the skill level of Egyptian employees, but also enhanced mutual understanding. "At present, Xidian Egypt has 260 employees, of which 254 are Egyptian employees, and more than 60% are engineering and technical personnel trained by us." Shi Chen said.

The development and growth of TEDA cooperation zone has effectively promoted local employment. Up to now, the cooperation zone has directly solved more than 9000 local jobs, and the industry has driven about 70000 jobs. The total proportion of Egyptian employees in the cooperation zone is 91.3, and the proportion of Egyptian employees in some enterprises is more than 98%.

Source: Ministry of Commerce, China-Africa TEDA Investment Co., Ltd.

Through enterprise training and guidance, the team of skilled personnel continues to grow, but there is still a shortage of management personnel. In this regard, China-Africa TEDA has established a "TEDA Overseas School" to spread and share experience in the development, construction and operation management of overseas parks based on TEDA's overseas model, and to build a team of localized talents.

Nahra, who is nearly 40 years old, has been working in the TEDA cooperation zone for 14 years. She started as an ordinary employee in the marketing department of Central Africa TEDA and was promoted to the CEO of Egypt TEDA Special Zone Development Company in 2015, responsible for the investment and operation of the TEDA Cooperation Zone Expansion Zone.

"At first, I was unfamiliar with Chinese and cutting-edge marketing concepts." Nachra said, "The company has provided me with various trainings, and has also arranged me to study in China many times through the TEDA overseas model, and in-depth study of relevant operation and management models, so that I can continue to grow."

There are great differences in language, culture and customs between China and Egypt. Nahra used what she learned in China to help employees of the two countries communicate better and effectively improve work efficiency. "In the TEDA Cooperation Zone, the cooperation between Egyptian and Chinese employees is smooth, and the career development channels for Egyptian employees are also smooth." said Nachra.

"Localized talents have a deep understanding of local culture, market needs and business environment, reducing communication costs, promoting unity and collaboration between Egyptian and Chinese employees, and improving the overall efficiency and cohesion of the team. With the help of Chinese companies, the professional skills and management capabilities of localized talents continue to improve, which has strongly promoted project landing and business expansion, providing continued impetus for the development of the park." Imade, a researcher at the Egyptian Liberation Research Center, said.

produce radiation effects

UAE, Canada and other countries and regions enterprises settled in the cooperation zone

In the expansion area of TEDA cooperation zone, the construction of China Xinxing Cast Pipe Co., Ltd. Egypt ductile iron pipe factory is in full swing.

On April 30 this year, the foundation stone laying ceremony was held for the 250000-ton cast pipe project of Xinxing Cast Pipe Company in Egypt, marking the official entry of the ductile iron pipe factory in Egypt.

Ma Ye, head of the Egyptian project of Xinxing Casting Pipe Company, introduced that ductile iron pipes are widely used in water supply, drainage, natural gas transmission and other fields. The Middle East and Africa markets have greater demand. "Building a plant in Egypt will help reduce production and transportation costs. You can also enjoy local preferential policies to help companies expand market share and enhance the international influence of the brand."

In addition to the landing of Chinese enterprises, enterprises from the United Arab Emirates, Canada and other countries and regions are also developing in the TEDA cooperation zone. Not long ago, Saudi Arabia's Heifthrakt Logistics Group and Syria's Fayyad Automobile Company signed contracts with Egypt's TEDA Special Zone Development Company to enter the TEDA Cooperation Zone.

In recent years, with the deepening of the joint construction of "Belt and Road Initiative", more and more Chinese enterprises have "gone out". The success of the TEDA Cooperation Zone not only provides a stage for the development of Chinese enterprises, but also produces a wider range of radiation effects, attracting enterprises from more countries and regions.

Enterprises expand and upgrade in the cooperation zone, and the cooperation zone also continues to upgrade from industrial clusters to industry-business collaboration. While expanding the industry, it actively expands business and commerce to further enhance its comprehensive competitiveness.

Since 2015, China-Africa TEDA has started to provide consulting services for the construction of many international projects in Africa-providing consulting services for the whole industry chain for China Road and Bridge's Mombasa Free Trade Zone project in Kenya and China Merchants's Djibouti project; participating in the pre-feasibility study review of the Black Point Special Economic Zone in Congo (Brazzaville); conducting preliminary research for the Kumasi Industrial Park project in Ghana ...... China-Africa TEDA is actively promoting its park construction and operating experience on the basis of improving its own level, helping Africa's Industrial Development and Better Serving and Building "the belt and road initiative".

To promote trade, industry and trade accommodation. With the industrial development of TEDA Cooperation Zone, the level of trade and logistics service guarantee in the zone has been continuously improved. At present, the MTS (Egyptian Science and Technology Service) customs logistics system under the Egyptian Ministry of Finance and the Egyptian General Administration of Customs has settled in the cooperation zone to provide enterprises with one-stop customs logistics services.

"The pyramid is made of stones." The TEDA Cooperation Zone is also exploring step by step in the close cooperation between China and Egypt, attracting more and more companies to invest and develop, and continue to release the huge potential of China-Africa cooperation.

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