Egypt Approves New Wiring Harness Plant to Strengthen Local Automotive Components Manufacturing

Egypt's automotive industry has received a new boost in its drive to deepen local manufacturing after the Cabinet approved the establishment of a specialized factory to produce automotive wiring harnesses, one of the most critical components used in modern vehicles. The move is aimed at supporting the automotive supplier industry, improving the competitiveness of locally manufactured products, and increasing the added value of Egypt's automotive manufacturing sector.

New Manufacturing Project Approved

During a Cabinet meeting chaired by Prime Minister Mostafa Madbouly, the government approved moving forward with contractual procedures with Elsewedy Electric to establish an industrial project dedicated to producing all types of automotive wiring harnesses and their components. The factory will be built on a 22.6-feddan site in the Manshaat Kamal area of Fayoum Center, representing a significant addition to Egypt's automotive components manufacturing ecosystem.

Automotive wiring harnesses play a vital role in modern vehicles by connecting every major electrical and electronic system throughout the car. They link the engine control unit with lighting systems, safety features, communication functions, infotainment technologies, and advanced driver assistance systems, making them one of the essential components required for vehicle manufacturing and assembly.

Supporting Local Production and Export Growth

The new factory is expected to increase reliance on locally manufactured automotive components while supporting vehicle assembly and manufacturing companies operating in the Egyptian market. It is also expected to create new export opportunities for the automotive supplier industry, which continues to receive growing attention as part of the state's strategy to localize automotive manufacturing and strengthen domestic production capabilities.

Beyond the industrial sector, the Cabinet also approved increasing the authorized capital of Suez Canal Modern Boats Company from USD 100 million to USD 250 million. In addition, it approved the start of procedures to establish an integrated logistics and services zone covering 30 feddans in Toshka, Aswan Governorate. The logistics zone is expected to support the planned dry port project in Toshka by improving supply chain efficiency, transportation, and trade while providing infrastructure that serves multiple industries, particularly the automotive sector, which depends heavily on the efficient movement of components and finished products. These decisions reflect the government's continued focus on attracting value-added industrial investments, expanding local manufacturing capabilities, supporting Egypt's ambition to become a regional hub for automotive component production and exports, and strengthening its position within the regional engineering industries landscape.