(MENAFN- Daily News Egypt) Deputy Prime Minister for Industrial Development, Minister of industry and transport Kamel El-Wazir witnessed the signing of an agreement between China's BAIC and Alkan Auto, a subsidiary of the Egyptian International Motors, to establish an electric vehicle factory in Egypt.
The agreement was signed by Zhao Bingfei, Vice President of BAIC, and Khaled Nosseir, Chairperson of Alkan Auto, in the presence of Song Wei, President of BAIC, Taher Lasheen, CEO and Managing Director of the Egyptian International Motors, and Ahmed El-Khadem, General Manager of the Kia and BAIC brands, along with several senior officials from the Ministry of Industry.
At the beginning of the meeting, the Minister noted that this signing aligns with the directives of President Abdel Fattah Al-Sisi to transform Egypt into a regional industrial hub, localize the automotive industry and its supporting industries, and enhance the role of the private sector in manufacturing.
The Minister highlighted the Ministry's commitment to supporting this new project to quickly enter the production phase. He highlighted that the Industrial Development Authority has allocated the necessary industrial land for the project and expressed readiness to complete all industrial licensing procedures to facilitate the start of production.
The Minister also affirmed the Ministry of Industry's commitment to deepening local manufacturing and attracting global investments in the automotive and related industries to meet local market demand and boost exports, particularly to the Middle East and Africa.
He emphasized the Ministry's readiness to provide all forms of support to international car companies for production and expansion in the Egyptian market, contributing to real investment inflows, local industry localization, and creating more job opportunities for youth.
The factory is planned to begin production by the end of 2025 and will be established on an area of 120,000 sqm, aiming to meet the needs of the local market and export to Middle Eastern and African markets. In the first year, the factory is set to produce 20,000 vehicles, with production projected to reach 50,000 vehicles by the end of the fifth year. The local raw materials of the project is 48%, with a target to increase it to 58%, and the project will provide around 1,200 new job opportunities.
Song Wei, President of BAIC, stated that the company is committed to strengthen its presence in the Egyptian market, considering it one of the most important markets in the region. This commitment led the company to launch a new model of its cars yesterday from the heart of Egypt, marking its first global debut through the Egyptian market.
He noted that BAIC has been operating in China since 1958 and began producing electric vehicles several years ago. The company continually invests in research and development to produce high-quality vehicles, both within China and in international markets.
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