Egypt’s government on Thursday witnessed the signing of a memorandum of understanding with Chinese smart equipment maker Jiangsu Changxu, aimed at establishing a base for planning and building automobile and other transport vehicle factories in the country.
The agreement was signed by Investment and Foreign Trade Minister Mohamed Farid, Industry Minister Khaled Hashem and Jiangsu Changxu Chairwoman Aileen Zhou, in co-operation with Italy’s FIDIA Automotive Engineering Systems S.R.L. and Egypt’s Sovereign Fund.
Prime Minister Mostafa Madbouly attended the signing ceremony at the government headquarters in the New Capital.
The project will establish an industrial and engineering platform specialising in automotive plant engineering, the manufacture and assembly of smart production equipment, technical services, technology transfer, training and project implementation in Egypt and regional markets, Hashem said.
The initiative seeks to localise automotive manufacturing technologies and production equipment by gradually transferring value-added activities to Egypt, including engineering and design, metal manufacturing, assembly, maintenance and after-sales services, he added.
The government will also study using the project as a platform to attract Chinese and international companies to complete automotive supply chains in Egypt, while strengthening the capabilities of local firms and Egyptian workers in smart manufacturing and industrial engineering, Hashem said.
Farid said the agreement was in line with the government’s strategy of attracting leading global companies with advanced supply chains, with a focus on technology localisation and expertise transfer.
The project is expected to deepen local manufacturing, reduce pressure on foreign currency resources, boost exports and help establish Egypt as a regional hub for vehicle manufacturing and automotive components, he said.
The initiative will support vehicle and component manufacturers in establishing new factories, increasing production capacity and raising the share of locally made components, Hashem said.
In the longer term, the project aims to create a regional base for engineering and manufacturing automotive factory equipment and smart manufacturing solutions, enhancing Egypt’s industrial competitiveness and supporting technology transfer, local value added and exports, he added.
