Prime Minister Mostafa Madbouli attending the signing of a quadrilateral MoU on building an automotive factory in SCzone. June 14, 2022. Press Photo
CAIRO – 14 June 2022: Prime Minister Mostafa Madbouli attended Tuesday the signing of a quadrilateral memorandum of understanding (MoU) to build an automotive factory in the Suez Canal Economic Zone (SCzone) located Eastern Port Said.
The factory, to be named EPAZ, should be able to produce 75,000 vehicles per annum in the first phase. The project is a joint venture by the Arab Organization for Industrialization (AOI), The Sovereign Fund of Egypt, the General Authority for SCzone, and the Egyptian International Motors (EIM).
The MoU is the base on which feasibility studies will be carried out, as the project comes within the government's plan to localize automotive industries in the country, to fulfill local needs and export to other markets, as mentioned by the Cabinet's press statement.
The prime minister had stated earlier today that Egypt imported $4-billion worth of vehicles in 2021, and that demand is estimated to rise threefold in the coming decade.
The prime minister had attended on Wednesday the signing of an MoU between the General Authority for Free Zones and Investment (GAFI) and Sumitomo Egypt for the latter to build a factory that produces braided cables for automotives.
The factory will span over 150,000 square meters in the 10th of Ramadan City, and will operate in the free zone system. The plant will be Sumitomo's largest in the world in terms of manufacturing that specific product, according to the Cabinet's press statement.
Chairman of GAFI Mohamed Abdel Wahab noted that Sumitomo Egypt already produces braided cables, supplying to automotive corporations in Europe and the Middle East. That is through eight plants located in Port Said, and in Cairo's 6th of October City and 10th of Ramadan City.
Chairman of Sumitomo Egypt Ahmed Magdy stated that the factory is estimated to be accomplished in a year and a half, so it would enter service by the end of 2023. He underlined that the entire output would be exported.
That is in light of achieving exports worth a total of LE10 billion over the past years, as indicated by the representative of Sumitomo Corporation Group. He explained that the company's decision stems from confidence in the investment climate in Egypt, and a desire to benefit from the incentives recently announced by the government.