Developing nations must locate their manufacturing operations where available resources and facilities make them most efficient. The presence of more than one third of the Egyptian industries in urban Alexandria has placed an undue burden on natural resources and has aggravated pollution problems. The U.S. Environmental Protection Agency (EPA) is conducting a study to identify existing and future industries in Alexandria, estimate the solid wastes produced by these industries, examine methods of reusing solid and other wastes, and assess the feasibility of these methods from the technical, economic, and environmental points of view. This paper presents a summary of the first phase of the EPA project, which encompasses surveys of residues from industrial sources in Alexandria. Studies to date indicate that wastes from various industries can be recovered economically. Wastes such as tin cans, glass, wastepaper, and food residues from processing of fruits, starch, and beer are examples of reusable industrial wastes in Egypt. The results of experimental studies for reuse of residues from oil refining, starch and yeast processing, and steel pickling are presented. Spent clay from edible oil refining is currently discarded, causing both handling and disposal problems. This clay contains as much as 40% oil; 90% can be recovered by extraction. The recovered oil can be successfully used in soap production, and the spent clay can be reused in oil bleaching. Other examples include starch and yeast wastes, which can be used for animal feed, and spent pickling liquor, which can be used as a coagulant aid for treating paper mill wastewater. A centralized system for collecting and treating hazardous residues is proposed to permit economical recovery of valuable materials.