Egypt and China's Jiangsu Changhong Discuss $20 Million Automotive Production Equipment Plant

Egypt's Ministry of Investment and Foreign Trade is continuing its strategy to attract foreign direct investment, deepen local manufacturing, and expand exports by prioritizing high-value industrial projects. As part of these efforts, Minister of Investment and Foreign Trade Dr. Mohamed Farid Saleh held talks with executives from China's Jiangsu Changhong, a global company specializing in the design, manufacturing, and maintenance of automotive and railway production lines, to discuss establishing a new manufacturing facility for automotive production equipment and assembly lines in the Egyptian market.

Initial Investment of $20 Million

During the meeting, both sides reviewed the proposed project, which the company plans to launch with initial investments of approximately $20 million, alongside a roadmap for expansion in later phases. The project aims to localize the production of automotive manufacturing equipment and production lines in Egypt, strengthen supply chains, increase local content, support the country's industrial localization goals, enhance the competitiveness of Egyptian industry, and contribute to higher export volumes.

Focus on Automotive Manufacturing and Advanced Technology

Dr. Mohamed Farid Saleh emphasized that the government places significant importance on attracting investments based on advanced technology and added value, with the automotive industry and its supporting industries ranking among the priority sectors within Egypt's economic development strategy. He noted that these investments are expected to reinforce domestic industrial capabilities while creating a stronger foundation for sustainable manufacturing growth.

The minister also highlighted Egypt's competitive advantages for international investors, including its advanced infrastructure, strategic geographic location, extensive network of free trade agreements, and investment incentives offered by the government. According to the minister, these factors strengthen the ability of Egyptian-made products to access regional and global markets while improving the country's attractiveness as a destination for industrial investment.

Government Support to Accelerate the Project

He added that the ministry is coordinating with all relevant authorities to provide the necessary support and facilitation measures to launch the project as quickly as possible. These efforts include securing suitable land and infrastructure, while also exploring the best mechanisms for cooperation with Egypt's Sovereign Fund. The government remains committed to providing an attractive investment environment and expediting the required procedures to ensure the project progresses according to its targeted implementation schedule.

The minister concluded that the project would deliver significant added value to Egypt's automotive industry by localizing the production of manufacturing equipment and production lines, facilitating technology transfer, strengthening partnerships with local manufacturers, improving supply chain efficiency, increasing exports, and creating new employment opportunities in line with the country's vision for deeper industrial localization and sustainable industrial development.