The return of the vice president    Expat voices heard    In pursuit of stability    Steel troubles    Delivering results    Partial sale of Banque du Caire    Understanding Sudan    It's not the end until it's the end    After the Sri Lanka bombings    Sliced twice    Egyptian triple    Staged in Cairo    Holiday binging    Avengers: Endgame    ‘Committed not to fail'    Celebrating World Heritage    Don't miss "The Sum of All Parts" exhibition at UBUNTU gallery    "The Golden Era: Egypt in the World Cup" photography show at AUC is a must go    Egypt's constitutional amendments approved: What's next?    La Liga clubs vote against changes to Copa del Rey, Super Cup    Tennis: Nadal rallies to beat Mayer in 3 sets in Barcelona Open    Centamin reports better-than-expected Q1 gold output    Egypt's state employees to be assessed ahead of transfer to New Administrative Capital    Egypt to set up 4 medical centers in Africa: Minister    Republished: Good morning, Sinai: A look at the headlines when Israel withdrew in 1982    Security, confronting terrorism are common challenges facing Egypt, African continent: Ramdan Orny    AU countries asks to extend transitional period in Sudan to 3 months    Upper Egypt pipelines receive 7.5m tonnes of fuel annually: PPC    Egyptian voters back constitutional amendments    Nasr asserts EGX role in helping companies grow    Petroleum Ministry establishes $2.3bn oil refining projects in Assiut    Thousands of Moroccans demand release of 42 Hirak Rif activists    Figurative Encounters: Exhibition Haphazardly Crosses Space, Time    Ministry of Culture mourns Bachir El-Sebaie    Anderlecht raided in transfer cash probe    Russia eases citizenship rules in east Ukraine    Sri Lankan president asks police chief, defence minister to quit following attacks    Sisi thanks Egyptians for their 'dazzling' participation in constitutional referendum    Elders, campaigners dominate scene in Kerdasa polling stations    250 archaeological missions from 25 countries work in Egypt: Minister    Spring Affair Returns for Second Season of Shopping, Charity    Tod's bring back Alber Elbaz to Fashion Scene    Bundesliga: Bayern Munich turn the screw in a reminder of champions past    The main differences between Catholics and Protestants    Karlovy Vary to honour cinematographer Vladmir Smutny    Trade exchange between Egypt, Tunisia to increase to $500m    Cairo Copts celebrate Palm Sunday    Vatican willing to offer technical know-how to help restore Notre-Dame    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Final agreement to revive El Nasr in H1 of 2019: Hisham Tawfik
Foreign delegation will arrive tomorrow to resume talks
Published in Daily News Egypt on 22 - 01 - 2019

The Ministry of Public Enterprise Sector is working, in cooperation with the ministry of trade and industry, in order to reach an agreement with one of the international companies to revive El Nasr Automotive Manufacturing Company (El Nasr), where many memorandums of understanding have been sent over the past two months to the largest automobile manufacturers around the world. The ministry received several responses which reflect the interest of many international companies in investing in the revival of El Nasr.
There are current ongoing negotiations between the government's officials and other four international companies, and it is likely to reach a number of six companies within a short timeframe. Moreover, a delegation from one of the four companies will arrive tomorrow to continue the talks on that matter. Analysts say that a final agreement will be reached in the first half (H1) of this year, which would put the automotive sector back on track.
The Public Enterprise Minister, Hisham Tawfik, stated that the main reason behind the revival of El Nasr is to localise the automotive industry in Egypt and export 50,000 cars annually, with local components estimated at 46%, and to follow the path of the Moroccan experience.
Tawfik also said that the Egyptian market enjoys the presence of 12 automotive producers which only assemble units in Egypt, while the local components included in these production lines remain under 17%, which is considered a modest ratio that does not match the history of the Egyptian automotive sector.
Moreover, he noted that the factories import the industry's requirements to be assembled in Egypt, then claim that the production is Egyptian. “They are not. Egyptian production means manufacturing the components in Egypt from scratch,” he said.
Tawfik also believes that the investors of El Nasr will receive many incentives from the government, explaining that the investor, who is yet to be selected, will also have an assembled production, but with the addition of 46% of local components.
Tawfik also stressed that any attempt to inaugurate a car factory, on the same level of quality and efficiency of El Nasr's, will not prove to be successful as the plant is built on an area of 900,000 sqm, and has a huge potential and equipment, to include buildings, paint workshops, and production lines, which already exist and do not need funds.
Tawfik ruled out placing El Nasr's brand on the cars, as the goal will be to export, unless the foreign investor agrees to place the brand for the local market, which will remain up to the investor and the marketing plan.
El Nasr stopped production in 2009, and officials began to liquefy it, then the process stopped in 2015. The idea to revive the company has recently emerged.
The minister also referred to an important point, which is the Nisr Tires, as its production stopped several years ago. The brand was preferred by Egyptian consumers.
The Nisr Tires are produced by the Transport and Engineering Company in Semouha, Alexandria, and is currently focusing on the production of tractors and heavy transport vehicles.
Tawfik said that the ministry discussed with several international tire companies means to cooperate to establish a new factory in the Ameriya area. The collaboration will be with foreign investors through shares. The tires' production will be decided at a later time, in order to decide on whether heavy transport vehicles' tires, or light passenger cars' tires will be manufactured.
Yet, it is likely that the trend will incline towards the passenger cars' market, as the demand for tires in Egypt is up to 15m tires per year, while only 1.25m are locally produced.
Moreover, Tawfik stressed that the tire industry is complex and sophisticated, therefore the presence of a foreign partner is necessary in order to make sure to manufacture a product with the latest technology in that field.
El Nasr is built on 900,000 sqm, and is divided into two factories: El Nasr Automotive Manufacturing Company, and the Engineering Company for Cars.

Clic here to read the story from its source.