The General Authority for Suez Canal Economic Zone (SCZone) has held a ground-breaking ceremony for a $30 million sportswear factory by South Korean company H&L Egypt Apparel in the West Qantara Industrial Zone. The project is expected to create around 2,000 direct jobs.
SCZoneE Chairman Moustafa Shaikhon attended the ceremony on Tuesday alongside South Korean Ambassador Kim Wan-joong, SCZONE Vice Chairman for the Northern Zone Mohamed Ibrahim, Ismailia Deputy Governor Ahmed Essam El-Din and company representatives. According to an SCZone statement, the factory will cover 42,000 square metres and use modern manufacturing technology to produce sportswear.
The company plans to develop a smart, environmentally friendly facility capable of supplying international markets. Shaikhon said that the project marked an important step in attracting South Korean investment to the zone, following the establishment of a comprehensive strategic partnership between Egypt and South Korea.
He added that the West Qantara Industrial Zone currently has 54 projects involving investors from nine countries, with total investments of approximately $1.54 billion. The textile and garment industry accounts for 43 of these projects. Shaikhon noted that the authority would continue developing infrastructure and improving services for investors to support industrial production, exports and job creation.
For his part, the South Korean ambassador stated that the Suez Canal Economic Zone's location and access to international markets through free trade agreements made it an attractive destination for Korean manufacturers. He expressed hope that the factory would encourage more South Korean companies to invest in Egypt.
Meanwhile, H&L Egypt Apparel CEO Lee Sung-jun said that the company planned to establish a modern production facility using advanced technology and sustainable manufacturing practices to compete in global markets. The factory is the first South Korean industrial project contracted within the Suez Canal Economic Zone.
Its agreement was signed in November 2025. The company has since doubled its planned investment from $15 million to $30 million. Egypt sees major expansion in agricultural development projects