Prime Minister Moustafa Madbouli on Sunday attended the signing ceremony of an exclusive technical license agreement between Mansour Automotive Group and China’s SAIC Motor Co. to manufacture MG cars in Egypt.
The premier also attended the signing of a land allocation contract between the Ministry of Transport (represented by the Public Authority for Land and Dry Ports) and Mansour Automotive to build a new facility for manufacturing MG cars in the New October City industrial zone with an investment of $135 million.
The technical license agreement was signed by Ankush Arora, CEO of the MAC Transportation, a subsidiary of Mansour Automotive Group, Vice President of SAIC Motor Zhao Aimin.
The land contract was signed by Sayed Metwally, Chairman of the Public Authority for Land and Dry Ports, and Arora.
On the sidelines of the signing, Premier Madbouli said: “Today we are celebrating two very important signings, to establish a new auto factory in the New October City industrial zone, with investments worth $135 million, featuring an Egyptian-Chinese partnership, to produce MG brand cars in Egypt, with a local components of 45 per cent.”
Establishing the new facility is the outcome of supportive policies adopted by the state over the past years for the automotive sector, as part of the national strategy aiming to localise the industry, Madbouli added.
Attending the event, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel el-Wazir, said that the signing of the exclusive technical license agreement goes in line with directives by President Abdel Fattah El Sisi, to promote the industrial sector in Egypt and localise various industries, aiming to turn the country into a regional industrial hub, as well as maximising co-operation with the international and local private sector. The agreement is a vital step towards promoting and developing the auto industry in Egypt, he added, noting that the project is one of the largest investments in the Egyptian sector.
It also supports the Egyptian government’s strategy to promote the local automotive industry and increase export capacity.
A plot of land, totalling 126,000 square metres, with an industrial investment activity, will be allocated in the New October City logistics zone to establish a factory for manufacturing cars, and various means of transportation, including MG cars belonging to the Chinese company SAIC Motor.
Mansour Automotive Group plans to start production during the second quarter of 2026 with a production capacity of 50,000 units in a first phase. Production is planned to be doubled in the second phase to 100,000 units per year, with a local content ratio of more than 45 per cent, el-Wazir explained.
The project is expected to provide 10,000 direct and indirect job opportunities, he noted.
Discussion about this post