Arab Finance: Egypt’s Ministry of Industry, the Sovereign Fund of Egypt (TSFE), and Chinese smart-equipment manufacturer Jiangsu Changhong Intelligent Equipment Co., Ltd. have inked a memorandum of understanding (MoU) to establish an industrial and engineering base for planning and building automotive and other transportation factories in Egypt, as per a statement.
Minister of Investment and Foreign Trade Mohamed Farid, Minister of Industry Khaled Hashem, and Jiangsu Changhong Chairwoman Aileen Zhou signed the MoU in the presence of Prime Minister Mostafa Madbouly at the government headquarters in the New Capital. The project will be developed in cooperation with Italy-based automotive engineering firm FIDIA Automotive Engineering Systems S.R.L.
Farid said the agreement aligns with the ministry’s strategy to attract international companies with advanced supply chains that can help localize technology, transfer expertise, deepen domestic manufacturing, reduce pressure on foreign currency resources, and expand Egypt’s export capacity.
The project is intended to strengthen Egypt’s capabilities in automotive manufacturing technology, components, and production equipment while supporting the industry’s competitiveness and attracting further investment in automotive and supporting industries.
The Ministry of Investment and Foreign Trade will continue working to facilitate international companies’ entry into the Egyptian market by removing obstacles, streamlining investor procedures, and providing incentives and services for high value-added industries.
Hashem said the MoU covers establishing a specialized platform for automotive plant engineering, the manufacture and assembly of smart production equipment, technical services, technology transfer and localization, training, and project implementation in Egypt and regional markets.
He added that the project will focus on gradually transferring value-added activities to Egypt, including engineering and design, metal fabrication, assembly, maintenance, and after-sales services.
The parties will also explore using the platform to attract Chinese and other international companies that can help complete Egypt’s automotive value chain and develop the capabilities of local companies and Egyptian professionals in smart manufacturing and industrial engineering.
The project supports the government’s automotive industry objectives by helping vehicle and component manufacturers establish factories, expand production capacity, and increase the use of locally manufactured components.
Over the longer term, it is intended to develop Egypt into a regional base for engineering and manufacturing automotive factory equipment and smart manufacturing solutions, supporting technology transfer, local added value, and exports.
