Egyptian Kemet signs $500mn deal with China’s Suzhou to build 5GW solar manufacturing complex

Egyptian renewable energy producer Kemet has signed an agreement with Chinese Suzhou Wetcheng (688698: SSE) to establish an integrated industrial complex for manufacturing photovoltaic cells and modules in Egypt, with total investments of $500mnn, Economy Plus reported on January 18.  

The new plant will have a production capacity of 5GW. It will be developed on an area of around 280,000 square metres and will cover the full value chain for solar cell and module manufacturing. 

The agreement also includes commitments to increase local value added, utilise domestically sourced production inputs, transfer expertise, build technical capabilities and promote technological innovation.

The signing took place during a visit by Egypt’s Minister of Electricity and Renewable Energy, Mahmoud Esmat, to China, where he held meetings with Chinese companies specialising in solar cell and module manufacturing.

The deal follows a separate agreement signed by Kemet a day earlier with Kernex to establish an integrated factory in Egypt for producing battery energy storage cells, with investments of $200mn and an annual capacity of 5,000 MW.

During the meetings, Esmat reviewed Egypt’s market size and the electricity sector’s roadmap under the national energy transition strategy, which prioritises expanding renewable energy’s share in the power mix. Discussions focused on supporting local industry, transferring and localising technology, expanding domestic manufacturing of electrical equipment and replacing imports with locally produced alternatives.

The minister also toured photovoltaic cell factories operated by GCL in China’s Jiangsu province, which will serve as a reference model for the new Egyptian complex. He explained that the private sector is leading renewable energy implementation, as Egypt targets renewables exceeding 42% of the energy mix by 2030 and 65% by 2040.