Prime Minister Mostafa Madbouly attended on Sunday the signing ceremony of a landmark agreement between Mansour Group and China's SAIC Motor to establish a $135m automotive manufacturing plant in Egypt. The agreement includes a technical licensing deal to produce MG cars locally, as well as a land allocation contract for the factory site in New October City. The land agreement was signed between Mansour Group and the General Authority for Land and Dry Ports, with the factory expected to span 126,000 square meters in the industrial zone of New October City. The project will be a major boost to Egypt's automotive sector, aligning with the country's strategy to localize vehicle manufacturing and increase local production capacity. Prime Minister Madbouly praised the initiative, emphasizing that the new factory would not only create jobs and promote technological transfer but also increase the local content of vehicles produced in Egypt. "This factory represents a significant step in implementing Egypt's national strategy for the automotive industry, which aims to boost local production and foster sustainable growth," he said. The signing ceremony was attended by key officials, including Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel Al-Wazir, and Minister of Investment and Foreign Trade Hassan El-Khatib. Under the terms of the agreement, the Mansour Group plans to begin production in the second quarter of 2026. The initial output will be 50,000 units annually, with plans to scale up to 100,000 units in phase two of the project. Local content is expected to exceed 45%, a critical component of Egypt's strategy to reduce dependence on imports and strengthen the domestic automotive supply chain. Al-Wazir highlighted the factory's advanced capabilities, which will include a range of specialized units such as a body shop, a high-tech paint workshop, a general assembly line, and a comprehensive warehouse. The project will not only focus on car production but will also offer a range of transportation solutions, contributing to the broader automotive ecosystem. The factory will be equipped with modern facilities designed to meet international standards. Key infrastructure includes an 8,000-square-meter body shop, a 12,000-square-meter paint workshop, a 10,000-square-meter assembly workshop, and a utilities building. Additionally, the factory will feature a 5,000-square-meter warehouse. Mansour Group plans to create significant job opportunities, both directly at the factory and within the broader supply chain. The project is expected to play a pivotal role in supporting Egypt's industrial development and the growth of its automotive sector, which has long been a cornerstone of the country's economic diversification efforts. This strategic partnership between Mansour Group and SAIC Motor underscores the growing economic ties between Egypt and China, further solidifying Egypt's position as a regional hub for automotive manufacturing.
