Egypt PET Recycling Expansion: Nile Plastic’s $15M Facility in Ain Sokhna | PET Recycling News

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Egypt PET Recycling Expansion: Nile Plastic’s $15M Facility in Ain Sokhna | PET Recycling News

Egypt’s PET recycling industry took a major leap forward on July 15, 2025, when the Nile Plastic Recycling Company secured a $15 million investment to build a new facility in Ain Sokhna, located within the Suez Canal Economic Zone (SCZone). This expansion marks a strategic milestone in Egypt’s sustainable development strategy.

1. Overview of the Expansion

The announcement, made by the General Authority for the SCZone and widely reported by reliable outlets such as Ahram Online and AllAfrica, confirmed the launch of a 10,000 m² PET recycling facility with a $15 M (~EGP 742 million) investment :contentReference[oaicite:2]{index=2}.

  • Facility scale: 10,000 m² annex to Nile Plastic’s existing site.
  • Processing capacity: 20,000 tons of PET waste annually.
  • Employment: Creation of 500 direct jobs.
  • Market orientation: 70% of output for export, 30% for domestic use.

2. Background: Phase One Success

Launched in November 2024, Nile Plastic Recycling commenced with a $20 M investment on a 12,000 m² site in Sokhna Industrial Zone. The initial facility is projected to recycle 22,000 tons/year of PET and reduce carbon emissions by 40,000 tons annually :contentReference[oaicite:3]{index=3}. Phase one also created 500 jobs, aligning with SCZone’s green economy aims.

3. Strategic Role of SCZone

The Suez Canal Economic Zone (est. 2015) spans over 460 km² and is Egypt’s flagship special economic zone :contentReference[oaicite:4]{index=4}. With a strategy rooted in infrastructure, logistics, and sustainable investments, SCZone champion chairs like Walid Gamal El‑Din have prioritized projects that enhance the circular economy and reduce environmental impact :contentReference[oaicite:5]{index=5}.

4. Economic and Environmental Impact

The new PET facility reinforces several national goals:

  • Circular economy promotion: Integrates high-value recycling into Egypt’s industrial base.
  • Boosted exports: 70% of output will be exported, supporting export-driven growth.
  • Job creation: 500 additional direct jobs, with indirect opportunities in logistics and services.
  • Carbon savings: Prevents over 40,000 tons of CO₂ emissions annually from virgin plastic use :contentReference[oaicite:6]{index=6}.

Research shows recycling 1 ton of plastic saves approximately 5,774 kWh of energy and cuts CO₂ emissions by around 2,000 lbs :contentReference[oaicite:7]{index=7}—reinforcing the global relevance of Egypt’s initiative.

5. Alignment with Egypt’s Green Agenda

Nile Plastic’s expansion is part of a broader trend. In 2023, SCZone and the Egyptian Environmental Affairs Agency funded waste recycling projects totaling $21.6 M in Semadco, Flex P Films, and Huhtamaki Egypt :contentReference[oaicite:8]{index=8}. These align with Egypt’s commitment to solid and liquid waste management, stated in its national environmental plans :contentReference[oaicite:9]{index=9}.

6. Egypt’s Recycling Sector: Context and Opportunity

Despite producing 80 million tons of waste annually, Egypt recycles only around 6–45% :contentReference[oaicite:10]{index=10}. Most recycling is informal, highlighting a pressing need for formal, large-scale, high-quality facilities like Nile Plastic. Industry analysts state expanding food-grade PET recycling addresses both environmental and economic vulnerabilities.

7. PET Recycling Technology

Egypt’s facility uses mechanical recycling processes, which:

  • Sort and shred PET bottles, remove contaminants;
  • Wash, dry, and pelletize PET into rPET suitable for food packaging;
  • Ensure compliance with EU and FDA standards for safety and purity.

Unlike emerging chemical recycling technologies (e.g., Europe’s “Infinite Loop” PET processes :contentReference[oaicite:11]{index=11}), mechanical recycling offers a cost‑effective, robust approach that supports immediate scale-up.

8. Challenges & Considerations

  • Feedstock security: Sourcing 20,000–22,000 tons of post-consumer PET annually.
  • Informal sector integration: Formalizing waste collection networks at a national level.
  • Quality consistency: Managing color and contamination levels to meet food-grade standards.
  • Value‑chain alignment: Ensuring local industries (like bottlers and packaging manufacturers) adopt rPET.

9. Future Growth Prospects

With phase two underway, potential next steps include:

  • Applying for international sustainability grants (e.g., EPAP III, EU Green funds).
  • Exploring chemical upcycling to produce virgin-quality PET.
  • Exporting rPET to high-demand markets in Europe, North Africa, and Gulf states.
  • Working with government and tech startups on digital traceability for plastic inputs.
  • Scaling into multi-material recycling, including HDPE, PP, and flexible plastic films.

10. Expert Quotes & Perspectives

“The expansion reflects SCZone’s ongoing commitment to its strategy of supporting the green economy and promoting sustainability… Recycling projects represent a fundamental pillar in the transition toward a low‑emission, clean industrial model.” – Walid Gamal El‑Din, SCZone Chairman :contentReference[oaicite:12]{index=12}

12. Conclusion

Nile Plastic Recycling Company’s $15M investment in a new PET recycling annex at Ain Sokhna is a transformative move for Egypt’s circular economy. It addresses resource efficiency, environmental sustainability, export promotion, and job creation—all critical components of Egypt’s Vision 2030 development goals. While challenges remain, this project signals strong momentum towards a formal, high-impact recycling ecosystem in Egypt and the wider region.

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The source: allafrica.com

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