Chairman of SCA Mohab Mamish during his meeting with Volkswagen's delegation - Press photo Chairman of SCA Mohab Mamish during his meeting with Volkswagen's delegation - Press photo

Germany’s Volkswagen in Egypt to explore investment in SCZone

Thu, Jan. 18, 2018
CAIRO – 18 January 2018: Chairman of the Suez Canal Authority (SCA) Mohab Mamish received on Thursday a delegation from German automaker Volkswagen to discuss investment opportunities in the Suez Canal Economic Zone (SCZone) and brief it on the benefits and incentives the zone offers to investors.

The meeting comes in light of some German companies’ interest to invest in the SCZone following Mamish’s visit to Germany in September 2017.
Mamish headed to Germany in September 2017 to promote the SCZone in four German cities.

The German delegation has been briefed on the zone’s legal and regulatory framework as well the benefits, tax breaks and geographical diversity that the zone offers.

Mamish said that Egypt seeks to attract multinational companies to invest in the SCZone, saying that Volkswagen will be a strong addition to investment in the country.

Deputy Head of SCZone Abdel-Kader Darwish said that Volkswagen’s production site in Africa is located in South Africa, which produces 3.3 percent of the company’s production.

He said that discussions are underway with the German company to establish a factory or a logistics center in the SCZone.

Over the past two years, Egypt has been seeking foreign investment for the Suez Canal Economic Zone, which is set to include an international logistics hub and areas for light, medium and heavy industry, as well as commercial and residential developments.

Stretching over 461 square kilometers, the zone extends through the three Suez Canal governorates of Suez, Port Said and Ismailia, and will include six maritime ports, to be completed by 2045.

In September 2017, Mamish said that German automaker Mercedes-Benz was set to establish a 50,000 square meter distribution facility in the SCZone.

The new facility will include a logistical redistribution center that will service local and regional markets.

The project will mark Mercedes-Benz’s comeback to the Egyptian market, after it ended local production of passenger cars in Egypt in 2015 over fears that free trade agreements the country signed with the EU would make assembly not profitable in the long run.

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