Reference news-the rise of modern industrial parks in the desert-China and Egypt jointly build an "economic growth pole" on the banks of the Red Sea"

Source Reference News

Reporter Shao Xiangyun Yang Wen Zhang Yuqi

Reporter in Cairo, Yao Bing, Dong Xiuzhu

Over the past 16 years, Chinese builders from the coast of the eastern Bohai Sea have brought urban development experience into ancient Egypt and rooted deeply in the area like the drought-tolerant plant camel thorn. The China-Egypt TEDA Suez Economic and Trade Cooperation Zone (hereinafter referred to as the TEDA Cooperation Zone), established in 2008, is located at the Sukhnaiquan Port in Suez Province, Egypt, about 120 kilometers away from the capital Cairo. It is the second batch of national-level overseas economic and trade approved by the Chinese government. The cooperation zone is operated by Tianjin China-Africa TEDA Investment Co., Ltd.

More than 170 enterprises have settled in, accumulated sales of more than $4.9 billion, taxes of $0.27 billion, and industry-driven employment of about 70000 people ...... Today, south of the Suez Canal and on the banks of the Red Sea, the industrial park jointly built by China and Egypt is emerging as a new "economic growth pole" in the region ".

China-Egypt TEDA Suez Economic and Trade Cooperation Zone photographed in Suez Province, Egypt (photo by Sui Xiankai)

From "Barren Land" to Development Highlands

Entering the exhibition hall on the first floor of Tianjin TEDA Investment Holding Co., Ltd., an aerial view is particularly eye-catching. "This is the'China-Egypt TEDA Suez Economic and Trade Cooperation Zone' jointly built by us and Egypt. This year, it has attracted dozens of companies to settle in, and 6 projects have been signed, with an estimated investment of 1.2 billion US dollars." China-Africa TEDA Investment Co., Ltd. Party Secretary, Chairman Li Daixin said.

The cooperation zone named after TEDA originated from the connection between Tianjin and Suez in Egypt more than 20 years ago. When the wheel of time returned to the 1990 s, Egypt felt the rapid development of China's development zones and expressed the hope that China would help Egypt build development zones in Suez.

The Suez region is bordered by the Red Sea to the east and is a Gobi area. Its geographical location and geological environment are very similar to those of TEDA. Qu Defu, chairman of Tianjin TEDA Investment Holding Co., Ltd., said: "in 1998, the State Council determined that Tianjin Economic and technological Development Zone should undertake the construction task, which has become the glorious mission of 'TEDA people." In 2008, with the approval of the Ministry of Commerce of China, the TEDA Cooperation Zone, as a national-level overseas economic and trade cooperation zone, was formally established. As the main body of Chinese investment and operation, China-Africa TEDA began to play a leading role in new projects.

"Potatoes at noon and cabbage at night, the next day upside down, cabbage at noon and potatoes at night ......" Recalling the scene at the beginning of the construction of the TEDA Cooperation Zone in 2008, Wei Jianqing, then the 29-year-old deputy general manager of China-Africa TEDA Investment Co., Ltd., still lamented the difficulties of the past.

Nowadays, in the industrial park, modern standard factories have sprung up, and container trucks shuttle back and forth. Tall palm trees and date palms on both sides of the road cast cool green shade, and bougainvillea dotted the office buildings and hotel apartments in the park. In this desert about 50 kilometers south of the Suez Canal, the TEDA Cooperation Zone is like an oasis inlaid in the vast desert, full of vitality.

China-Egypt TEDA Suez Economic and Trade Cooperation Zone Gate (Photo by Sui Xiankai)

Filling the "Made in Africa" industry gap

"I have heard a lot of preferential policies given by TEDA to settled enterprises, and I have also visited here several times. Every time I come, I will find that there are more enterprises settled in." Not long ago, Egyptian entrepreneur Nagra formally decided to set up a cable factory in "TEDA. "China's preparations here are very sufficient. I can make use of the factory buildings that have been built, and the park also provides all kinds of help and services."

The TEDA cooperation zone in Egypt, which has the highest investment density, the highest unit output, and the most concentrated Chinese-funded enterprises, is favored by investors, and entrepreneurs like Nagra continue to visit. "Since the beginning of this year, we have received nearly 200 inspection groups to TEDA. It can be said that investment promotion is very popular!" Wei Jianqing said with a smile.

At present, the TEDA Cooperation Zone has formed four leading industrial clusters: new building materials, petroleum equipment, high and low voltage equipment, and machinery manufacturing, and has successfully attracted a large number of world-class Chinese-funded enterprises to settle in. On August 8, under the witness of Egyptian Prime Minister Mustafa Madbouli and other senior Egyptian officials, the signing ceremony of Hisense's Egyptian TV factory project was successfully held. The project covering an area of about 200 mu is expected to be put into production in the TEDA cooperation zone next year. In addition to meeting the local demand of Egypt, most of the products will be exported to Europe, the Middle East, Africa and other markets.

"Many industries in China are combined with the location adjustment of Egypt's local resource endowment, which is in line with Egypt's demands and aspirations for future industrial development." Teda Investment Holdings Co., Ltd. General Manager Hu Hao said.

Jushi Egypt Glass Fiber Co., Ltd. (Jushi Egypt), invested and established by China Jushi Group, is one of the enterprises that entered the TEDA cooperation zone earlier. They introduced a set of glass fiber production technology with independent intellectual property rights into Egypt. The company made Egypt, which was not a glass fiber producer, become the fourth largest glass fiber producer in the world at one stroke, and promoted the development of mineral raw materials and packaging materials in the upper reaches of Egypt, at present, 95% of the raw materials are purchased in Egypt.

Employees work on the dishwasher production line of Midea Egypt Kitchen and Water Heater Co., Ltd. (Photo by Sui Xiankai)

Focus on cultivating local talent team

There are many more stories from "0" to "1. Chen Weiwei, general manager of Midea Egypt Kitchen and Water Heater Co., Ltd., said: "The entire Egypt lacks a dishwasher manufacturing industry chain, and there are no qualified talents and mature suppliers." By interviewing different suppliers, exchanging technical standards and promoting the localization of talents, the largest dishwasher factory in North Africa, which landed in the TEDA cooperation zone, was successfully put into operation. "We have trained both local workers and the entire dishwasher industry chain in Egypt." Chen Weiwei said.

Nahra Imad, CEO of Egypt's TEDA Special Administrative Region Development Company, inspects the construction site in the expansion area (photo by Sui Xiankai)

For the 40-year-old Nahra Imad, she never thought that she could grow from a college graduate to the Egyptian "head" of the TEDA Cooperation Zone ". She did not understand Chinese, and after unremitting efforts, she became the CEO of Egypt's TEDA Special Zone Development Company.

Nahra said that the Chinese enterprises settled in Egypt have improved the technical level of related industries in Egypt, and even filled the industrial gap in Africa.

In the first half of this year, China Xinxing cast Pipe Co., Ltd., the world's largest R & D manufacturer of ductile iron pipes and pipe castings, signed a land purchase agreement with Egypt's TEDA Special Zone Development Company. The first overseas cast pipe production base will make up for the gap in the field of ductile iron pipe industry in Egypt, enhance the research and development and supply capacity of Egypt's local pipeline, and is expected to bring Egypt nearly US $0.2 billion a year in foreign exchange income and provide more than 500 local jobs. As of the end of August this year, TEDA cooperation zone directly solve about 9000 jobs. Li Daixin said that company data shows that the localization rate of China-Africa TEDA employees exceeds 90%, and the localization rate of middle and senior managers exceeds 80%. It has also trained and exported a group of professional technical workers and corporate management talents for Egypt.

China-Egypt TEDA Suez Economic and Trade Cooperation Zone Integrated Service Building (Wang Dongzhen)

"TEDA" model nourishes industrial development

Not long ago, a domestic enterprise set up a factory in TEDA. According to the relevant laws and regulations of Egypt, it is necessary to register Egypt's import customs clearance system before it can import project construction materials. In order to speed up the implementation of the project, the Egyptian TEDA Special Zone Development Company imported the goods in the name of the development company, and stored the goods in the TEDA bonded warehouse first, and then transferred the goods after the subsidiary had the import qualification. This way of handling material storage business for enterprises not only shortens the construction cycle, but also improves the ability of enterprises to resist risks. "Chinese companies will encounter various risks and difficulties when they go global. The cooperation park is a good platform carrier that allows Chinese companies to go out to sea in groups, develop in clusters, and enhance their ability to resist risks." Hu Hao said, "'TED' does not only represent the name of a company or park, but also represents a development model." China's investment, technology and development experience are providing rich nourishment for the industrialization process and development and revitalization of African countries. Combined with many years of overseas development experience, the "TEDA Overseas Model" summarized and formed by the TEDA Cooperation Zone has been applied to more than 10 overseas parks along the "the belt and road initiative" route, such as the China Road and Bridge Kenya Mombasa Free Trade Zone Project, to help the development of China's overseas parks.

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