Russia is expected to establish an industrial zone in the northern coastal city of Alexandria with an area of one million square meters, the official Mena news agency reported Monday.

Minister of Trade and Industry Rachid Mohamed Rachid signed the agreement on Tuesday with Russian Industry and Energy Minister Viktor Khristenko, who arrived in Cairo later on Monday, Mena reports added.

Rachid was quoted as saying that the new zone is expected to include projects for producing and assembling parts for automobiles and aircrafts, in addition to equipment needed for the production of energy, power and the engineering industries for the oil sector.

The zone entails an investment of $2 billion, and plans for a seawater desalination plant are also included, he added.