The project will be implemented through a partnership between Cheng Feng Iron Production and Sinoma CDI companies.
It is planned to be built on 750,000 square metres and generate 1,200 jobs.
Under the proposal of the two Chinese companies, the project is set to be launched in two phases to meet the local demand and export.
In a meeting with the Chairman of the SCZone Walid Gamal El-Din, the Chinese companies are set to visit the site of the project in the near future.
Egypt is the largest steel producer in Africa and the second largest in the Middle East and North Africa, according to a report by Fitch Solutions, cited by the Information and Decision Support Centre.