Mostafa Madbouly witnesses the signing of a memorandum of understanding for the establishment of a base for the planning and construction of automobile and various transport factories in Egypt
Cairo - Ahmed Sabry
Dr. Mostafa Madbouly, Prime Minister, witnessed the signing ceremony of a memorandum of understanding between the Ministry of Industry, the Egyptian Sovereign Fund under the Ministry of Investment and Foreign Trade, and the Chinese company Jiangsu Chan Xu for Intelligent Equipment, in cooperation with Vida for Automotive Engineering Systems, regarding the project to establish a base for the planning and construction of automobile and various transportation manufacturing plants in Egypt.
The memorandum was signed by Mohamed Farid, Minister of Investment and Foreign Trade; Eng. Khaled Hashem, Minister of Industry; and Ailin Chu, President of Jiangsu Chan Xu.
Mohamed Farid, Minister of Investment and Foreign Trade, emphasized that the signing of the memorandum with the Chinese company aligns with the Ministry’s strategy aimed at attracting leading global companies, particularly those possessing advanced supply chains capable of adding real value to the national economy. This includes, foremost, the localization of technology and transfer of expertise, which contributes to deepening local manufacturing, alleviating pressure on dollar resources, and increasing export capacities.
He added that the new project represents an important step in enhancing national capabilities in automobile manufacturing technology, components, and equipment, thereby contributing to raising the competitiveness of the Egyptian industry and strengthening Egypt’s position as a regional hub for automobile manufacturing and its supporting industries. This will attract further investments in this sector, in line with the state’s direction toward deepening local manufacturing, increasing the local content ratio, and enhancing the ability to access external markets and boost exports.
He noted that the Ministry continues its efforts to facilitate the entry of major global companies into the Egyptian market by removing obstacles and procedures for investors, and providing a comprehensive package of incentives and services, thereby enhancing Egypt’s attractiveness as a regional investment destination for high value-added industries.
For his part, Khaled Hashem, Minister of Industry, stated that the memorandum of understanding aims to establish a project for an industrial and engineering platform specialized in automobile plant engineering, manufacturing and assembly of intelligent production equipment, and providing technical services, technology transfer and localization, training, and project implementation in Egypt and regional markets.
He clarified that the project’s primary orientation is based on localizing automobile manufacturing technology and production equipment within Egypt, through the gradual transfer of value-added activities to the Egyptian market in areas including engineering and design, metal manufacturing, assembly, maintenance, and after-sales services.
He pointed out that the project will be studied as a platform to attract Chinese and international companies to complete the automotive industry value chain in Egypt, and to enhance the capabilities of local companies and Egyptian cadres in the fields of smart manufacturing and industrial engineering.
He explained that the project is directly linked to the Egyptian state’s objectives for developing the automobile industry and its supporting sectors, by supporting automobile and component manufacturers in establishing new plants, increasing production capacities, and boosting local content.
He noted that the project aims to build a regional base for the engineering and manufacturing of automobile plant equipment and smart manufacturing solutions, thereby enhancing the competitiveness of the Egyptian industry, supporting the deepening of local manufacturing and technology transfer, and increasing value-added and exports.
