Egyptian Prime Minister Mostafa Madbouly on Tuesday witnessed the signing ceremony of a memorandum of understanding on the localization of the automotive and feeding industries in the industrial zone of East Port Said.
Egypt plans to have the complex at a capacity to manufacture 75,000 vehicles annually for its first stage, and establish the EPAZ joint vehicle manufacturing complex.
The MoU was signed between the General Authority for the Economic Zone of the Suez Canal, the Sovereign Fund of Egypt, East Port Said Development Company and the Egyptian International Motors Company.
The signatures were from Yahya Zaki, President of the Suez Canal Economic Zone, Ayman Soliman, Executive Director of the Sovereign Fund of Egypt, Karim Sami Saad, Chairman of East Port Said Development Board, and Khaled Noseir, President of the Egyptian International Motors Company.
The signing of the memorandum of understanding came after the Prime Minister announced the national strategy for the development of the automotive industry, which was launched from East Port Said in the Suez Canal Economic Zone on Tuesday.
The memorandum aims to enhance returns from investment in this vital sector by assembling and manufacturing cars and vehicles, and then localizing the industry, replacing imports, and maximizing supply chains for this sector.
The four-way MoU will help conduct the necessary feasibility studies for this project, including all financial and technical aspects.
This will establish a joint industrial complex for the manufacture of auto parts and accessories in the industrial zone east of Port Said, and ensure the commitment of the Egyptian International Motors Company to use the agreed production capacity.
The MoU also stipulated the necessity of enhancing the competitiveness of this industrial complex, within the national strategy for the manufacture of cars, marketing the production capacity of international car companies, meeting the needs of the local and regional market, exporting to foreign markets, and maximizing competition locally and internationally in this sector.
