Egypt has secured on Sunday two major agreements to establish a new car manufacturing plant in New October City, supported by a $135 million investment. This initiative aligns with the government's strategy to boost local car production and expand export capacity. Key Agreements 1. Technical Licensing Agreement The first agreement is a technical licensing arrangement between Al-Mansour Automotive Group and the Chinese company SAIC Motor, granting exclusive rights to produce MG brand cars in Egypt. 2. Land Allocation Agreement The second agreement involves the allocation of land under the usufruct system for the construction of the factory. This agreement was signed between the Egyptian Ministry of Transport and Al-Mansour Automotive Group. Strategic Importance The project marks one of the largest investments in Egypt's automotive industry. It is expected to contribute significantly to Egypt's industrial development by producing MG brand vehicles with a local component exceeding 45 per cent. Location and Infrastructure A 126,000-square-metre plot of land in the logistics area of New October City has been designated for the factory. The facility will include various manufacturing units, such as body, painting, and assembly workshops, along with buildings for utilities and administration. A covered warehouse will also be part of the infrastructure. Production Timeline, Capacity, Job Opportunities The factory is set to begin production in the second quarter of 2026, with an initial production capacity of 50,000 units annually. This capacity will eventually double to 100,000 units per year during the second phase. The project is expected to create approximately 10,000 direct and indirect job opportunities. Additionally, it will offer training and qualification programmes for new talents in the Egyptian market, enhancing the local workforce. This initiative is part of Egypt's broader efforts to improve its transportation infrastructure, which includes national road projects and the development of maritime and land ports. These efforts aim to attract foreign investments, promote sustainability, and foster a business-friendly environment for both local and international companies. Moreover, the new factory is positioned as a key player in the regional car manufacturing sector. Al-Mansour Automotive Group and SAIC Motor aim to meet local demand while increasing Egypt's export capacity, positioning the country as a competitive player in the global automotive market. Attribution: Amwal Al Ghad English Subediting: Y.Yasser
