China’s CITIC Construction signs deal to build desalination membrane plant in Egypt

Egypt’s Ministry of Housing has signed a memorandum of understanding (MoU) with China’s CITIC Construction and the International Company for Petroleum and Industrial Services (ANCOM) to establish a factory producing reverse osmosis membranes for seawater desalination plants, Economy Plus reported on April 20, citing an official statement.

The Chinese state-owned firm has extensive experience in reverse osmosis desalination systems and has delivered similar projects in multiple countries worldwide. CITIC Construction is a primary subsidiary of CITIC Limited (HKEX: 0267). 

The factory will support Egypt’s expanding desalination programme and reduce reliance on imported components as the country invests in water security amid rapid coastal urban growth. Housing Minister Randa Al-Manshawi said localisation of desalination technology, particularly reverse osmosis membranes, is a strategic priority aimed at lowering costs, transferring technology and supporting domestic manufacturing.

The ministry has outlined a national desalination strategy extending to 2050, targeting production capacity of around 9mn cubic metres per day through phased investment plans.

CITIC Construction said the project follows earlier discussions with Egyptian officials and indicates its commitment to expanding cooperation in infrastructure and industrial development projects in the region.

The agreement also supports Egypt’s broader plan to localise key industrial components, attract foreign investment, and strengthen supply chains for critical infrastructure, particularly in the water and energy sectors, as the government seeks to meet rising demand from new urban communities and long-term development projects along the Mediterranean and Red Sea coasts.