Starting a Gypsum Board Factory in Egypt

A gypsum board factory in Egypt has good gypsum nearby and a route to export markets, but gas is the first risk to resolve. Industrial tariffs rose in May 2026, and supply was cut in 2025. New capacity is also concentrating around Suez and Sokhna. Test fuel security, gypsum access and an export plan before you size the line.

This article is desk research from the public sources listed at the end. It is organized in the order an investor should test an Egyptian project: fuel first, then raw material, competitors, export logic, standards and local demand. For the general method, see how to read gypsum board market signals.

Start With Gas: Tariffs and Supply Risk in Egypt

In most countries, gas is one input among several. In Egypt it is the question that can stop the line, and it has been moving fast.

Tariff. From May 2026, under Decree No. 1306 of 2026, gas prices for industry were reset (Egyptian Streets; Business Today Egypt):

The reports do not name gypsum. It would seem to sit under “all other industrial activities”, but that is our reading, so get written confirmation of your classification from the gas supplier.

Our 3,000,000 m² a year reference line uses 1.5–2.0 million m³ of natural gas a year. Ask the supplier to state the actual heating value, because the tariff is set per MMBtu and our figure is in m³.

Supply. The price matters less than whether gas arrives at all:

• Egyptian gas output fell from a peak of about 6,133 million m³ in March 2021 to about 3,485 million m³ in April 2025, on JODI data, and the government arranged 150–160 LNG cargoes for July 2025 to June 2026 (Gas Processing News).
• In June 2025, when Israeli pipeline gas stopped during the Iran-Israel conflict, gas to energy-intensive industries was cut to protect power stations. Fertilizer plants paused, and diesel and mazut deliveries to food and cement factories were suspended for 14 days (Enterprise).
• In March 2026 the Prime Minister put the monthly gas import bill at about US$1.65 billion, up from US$560 million before the conflict with Iran (Business Today Egypt).

What to do with this:

1. Ask the supplier about allocation priority for your category, and about what happened to comparable factories in June 2025.
2. Ask suppliers to price the burners and hot-gas generator for a second fuel. Remember the same 2025 event also interrupted liquid fuels, so check how much storage you would need and how it would be supplied.
3. Model a stoppage. A dryer without gas stops the entire line, and wet board in process becomes waste. See how the multi-deck dryer works.
4. Compare the calciner options with fuel flexibility in mind, not only efficiency.

Power supply follows the gas

Egypt’s grid depends on the same fuel. A study by the Cabinet’s Information and Decision Support Center put natural gas at 81.3% of power generation in 2024, so a gas shortage quickly becomes an electricity problem, and Egypt has resorted to load shedding.

Our reference line has 600–800 kW installed and uses 1.4–1.8 million kWh a year. That is a modest load, but continuous lines dislike interruptions. Ask the zone or utility for its outage record and connection terms, and specify a safe shutdown sequence for the forming and setting section. Mains at 230 V, 50 Hz match most standard equipment built in China, so frequency is not an issue; voltage stability is the point to check.

Gypsum Sources: Sinai, Suez and Aswan

Egypt has no entry in the USGS Mineral Commodity Summaries table. The fuller source is the USGS 2024 Minerals Yearbook chapter on Egypt, which carries crude gypsum at an estimated 1 million t a year for each of 2020–2024. That flat figure is an estimate, not a measurement. The same chapter lists named operations whose capacity is well above it:

Listed capacity is not output, but the geography matters: the western Sinai cluster lies close to the Suez industrial belt. Knauf’s plant at Ataqa was described as chosen for its location between raw material sites and markets. A plant in Upper Egypt or the Delta needs its own freight calculation.

Our reference line needs about 25,000 t of pure gypsum a year, or about 2.5% of the USGS estimate, so national tonnage is not the constraint. Two other questions are:

• Licensing. USGS describes the framework as the Mineral Resources Law No. 198 of 2014, amended by Law No. 145 of 2019, with executive regulations of 2020. The Egyptian Mineral Resources Authority issues exploration and exploitation licenses, while governorates license quarries. Decide early whether you will buy gypsum or hold your own license.
• Quality. Test a sample from the actual working face, because clay and anhydrite affect stucco yield and setting. Natural gypsum is the realistic base. The Hamarawein coal project has been recorded as cancelled, and FGD gypsum normally comes from coal plants. We did not find public evidence of a wallboard-grade FGD source in Egypt. See natural vs synthetic gypsum.

Gypsum Board Manufacturers in Egypt: New Capacity Is Coming

The publicly reported names below are not a complete census, and the sources span eleven years.

We could not establish from these reports whether the BNBM and Beixin Taishan figures overlap, or whether all announced capacity was built. Even so, our estimate puts named capacity at about 100–120 million m² a year, or about 0.8–1.0 m² per person on a 2025 population of 118 million (World Bank).

This is far below the roughly 5.9 m² per person of named capacity in Saudi Arabia, which might suggest room to grow. But the investors above have read the same numbers: they have been building at scale, and the newest plants are close to one another. A small entrant would be competing with established lines for the same contractors, and on the same gas.

Local producers are also tying up the channel. Global Gypsum reported in November 2024 that Knauf Egypt would supply building materials for more than 100 upcoming Hassan Allam Construction projects. Ask early how much contractor volume is really open.

Export Is a Core Part of the Egyptian Case

Egypt’s trade numbers look different from what a growing domestic market would suggest. Exports under HS 6809.11 far exceeded imports in 2023:

At a working estimate of 9 kg/m² for 12 mm board (based on our reference line’s 7.0 kg of stucco per m² set back to gypsum, plus 0.45 kg of paper), exports are about 5 million m² and imports under 1 million m². Imports are too small to replace, so a domestic-only project cannot rely on them.

Producers are already looking outward. Knauf Egypt reports selling wallboard in 13 countries, including Greece, Morocco and South Africa, and Industrial House expects to export 80% of output from its planned Sinai plant. That points to a useful question: which markets can an Egyptian plant reach at a freight cost local rivals cannot match, and which can an Egyptian plant serve only while they have no line of their own?

If you plan to export, build each target’s standard into the line design at the start. A plant selling to EN-based markets and to others on ASTM C1396 will need different formulations and laboratory methods. Export sales are also exposed to the shipping cost on your specific route, so model each lane rather than one average figure.

Standards: ES 2002 and the Wider System Family

The relevant Egyptian document is a family of standards, not a single one. In WTO notification G/TBT/N/EGY/166 of June 2017, the Egyptian Organization for Standardization and Quality (EOS) notified eight drafts that comply with European standards:

Two things follow. First, board made to EN 520 is the natural design basis. Second, the family shows where a plant could expand beyond board into framing and system parts, which is how established producers defend their sales.

The notification did not state whether these were mandatory or give an effective date. The US Commercial Service’s Egypt guide says most Egyptian specifications are optional, except those covering health, security and consumer protection. So ask EOS for the current edition and legal status of ES 2002 before you rely on it.

Imports. The General Organization for Export and Import Control (GOEIC) coordinates import inspection, and its factory registration program has been part of customs clearance for listed products since 2016. Germany Trade & Invest describes conformity checks for imports including machinery and spare parts. We could not confirm from these sources whether gypsum board or your line’s equipment is on the current lists, so ask a customs broker. Import clearance, duties, taxes and local registration are the buyer’s responsibility.

Local Demand: Housing Finance and Installer Skills

Egypt’s housing program is real and large. The World Bank has supported the Inclusive Housing Finance Program behind the government’s goal of more than one million homes for low-income households, and a later report said US$850 million had been disbursed, with a further US$150 million planned.

But housing finance does not equal board demand. Before counting these units as customers, find out what the specifications call for. Do partitions use board, or only ceilings?

Installer capacity is another clue. Knauf Egypt’s program with GIZ, reported at 4,000 construction specialists trained per year, shows that the established producer sees skills as a limit on growth. A new entrant benefits from that work, but also relies on crews trained on a competitor’s system.

How a Site Comparison Could Look

Three broad options emerge from the facts above. Rate your own project against them with real quotations.

The gas row is identical across all three on purpose: no location removes that question.

FAQ

How much does natural gas cost a gypsum board factory in Egypt?

Decree No. 1306 of 2026 set US$6.75 per MMBtu for “all other industrial activities”, with a floor of US$6.50 and higher rates for cement and steel. The reports do not name gypsum, so get your classification in writing. Our reference line uses 1.5–2.0 million m³ of gas a year, so also confirm how your supplier converts m³ to MMBtu.

Where does gypsum come from in Egypt?

USGS lists gypsum operations mainly in South Sinai, including Wadi Gharandel, Ras Mala’ab and Ras Sedr, plus quarries at Edfo in Aswan. It estimates national output at about 1 million t a year. The Egyptian Mineral Resources Authority handles exploration and exploitation licenses, while governorates license quarries. Test a sample from the actual working face before you fix the preparation section.

Which gypsum board standard applies in Egypt?

ES 2002 covers gypsum plasterboards, and it was notified to the WTO in 2017 as a draft that follows EN 520, along with related standards for framing, fasteners and composite panels. The notice did not state whether it is mandatory. Ask the Egyptian Organization for Standardization and Quality for the current edition and legal status before you fix your product range.

Is Egypt a good export base for gypsum board?

It can be, and existing producers already use it that way. Egypt exported about 48,000 t of paper-faced board in 2023, led by Libya, and Knauf Egypt reports sales in 13 countries. However, new plants target the same markets, and buyers may build their own lines. Model freight and standards for each destination instead of relying on a general regional story.

Can a line run on another fuel if gas is cut?

Burners and hot-gas systems can be configured for other fuels, but dual-fuel capability adds equipment, storage and handling, and it should be priced in the first quotation. Egypt’s June 2025 shortage also suspended diesel and mazut deliveries to some industries, so a backup fuel needs its own supply plan. Size the storage from the length of outage you want to survive.

Planning a Gypsum Board Line for Egypt?

When gas, gypsum and sales routes are clear, the gypsum board production line page shows the sections, consumption and building needs of our reference design. YuxingCorp is a Singapore company that compares lines from vetted manufacturers in China; we are not the manufacturer. For the planning sequence, read the gypsum board plant setup guide, and for financing, see what a bankable business plan contains.

Sources

• Egyptian Streets, Egypt raises natural gas prices for energy-intensive industries (May 2026): https://egyptianstreets.com/2026/05/05/egypt-raises-natural-gas-prices-for-energy-intensive-industries-starting-may/
• Business Today Egypt, Egypt raises natural gas prices (May 2026): https://www.businesstodayegypt.com/Article/1/7402/Egypt-raises-natural-gas-prices-for-energy-intensive-industries
• Gas Processing News, Egypt to import LNG, July 2025 to June 2026 (June 2025): https://gasprocessingnews.com/news/2025/06/egypt-to-import-lng-to-cover-demand-from-july-2025-to-june-2026
• Enterprise, How Egypt’s recent gas crunch strained the industrial sector (June 2025): https://enterpriseam.com/egypt/inside_industry/how-egypts-recent-gas-crunch-strained-the-industrial-sector/
• Al-Ahram Gate, Cabinet IDSC study on gas in electricity generation (June 2026, Arabic): https://gate.ahram.org.eg/News/5669907.aspx
• WorldStandards, voltage and frequency by country: https://www.worldstandards.eu/electricity/plug-voltage-by-country/
• US Geological Survey, 2024 Minerals Yearbook: Egypt: https://pubs.usgs.gov/myb/vol3/2024/myb3-2024-egypt.pdf
• Global Energy Monitor, Hamarawein power station: https://www.gem.wiki/Hamarawein_power_station
• Global Gypsum, Knauf Egypt news, including the Suez plant (2015), third plant, contractor supply and training (2024): https://globalgypsum.com/news/itemlist/tag/Knauf%20Egypt
• Global Gypsum, “Global Gypsum Top 50” (June 2023): https://www.globalgypsum.com/magazine/articles/807-global-gypsum-top-50
• Amwal Al Ghad, Beixin Taishan factory in Sokhna (September 2026): https://en.amwalalghad.com/?p=230577
• Global Gypsum, Industrial House for Building Materials Sinai plant (February 2025): https://globalgypsum.com/news/2351-industrial-house-for-building-materials-announces-upcoming-sinai-gypsum-wallboard-plant
• World Bank, Population, total (SP.POP.TOTL), 2025: https://api.worldbank.org/v2/country/SAU;EGY;USA;WLD/indicator/SP.POP.TOTL?format=json&mrnev=1
• World Bank WITS, Egypt HS 680911 exports 2023: https://wits.worldbank.org/trade/comtrade/en/country/EGY/year/2023/tradeflow/Exports/partner/ALL/product/680911
• World Bank WITS, Egypt HS 680911 imports 2023: https://wits.worldbank.org/trade/comtrade/en/country/EGY/year/2023/tradeflow/Imports/partner/ALL/product/680911
• Egyptian Organization for Standardization and Quality, WTO notification G/TBT/N/EGY/166 (June 2017): https://www.eos.org.eg/ckfinder/userfiles/files/EGY166.pdf
• US International Trade Administration, Egypt Country Commercial Guide: Standards: https://www.trade.gov/country-commercial-guides/egypt-standards-trade
• US International Trade Administration, GOEIC Conformity Assessment Program: https://www.trade.gov/market-intelligence/goeic-conformity-assessment-program
• Germany Trade & Invest, Egypt customs report on standards (German): https://www.gtai.de/de/trade/aegypten/zoll/standards-und-normen-917036
• World Bank, Egypt Inclusive Housing Finance Program additional financing (March 2020): https://www.worldbank.org/en/news/press-release/2020/03/20/egypt-providing-low-income-citizens-with-affordable-housing
• Zawya, World Bank financing for Housing for All Egyptians (2026): https://www.zawya.com/en/economy/north-africa/world-bank-financing-for-housing-for-all-egyptians-initiative-to-reach-1bln-by-2026-end-llx5xkbr