Egypt, China’s Jiangsu Changyun sign MoU for automotive manufacturing platform

Egypt signed a memorandum of understanding with Chinese machinery maker Jiangsu Changyun Intelligent Technology Co., Ltd. to establish a platform for engineering and building automotive and other transport manufacturing plants in the country, the Cabinet said on Thursday.

Prime Minister Moustafa Madbouly witnessed the signing at the government headquarters in Egypt’s New Capital between the Ministry of Industry, the Sovereign Fund of Egypt (TSFE), and Jiangsu Changyun Intelligent Technology, in cooperation with Italian automotive engineering firm FIDIA Automotive Engineering Systems S.R.L.

The proposed platform will provide engineering and technical services for automotive plants, manufacture and assemble smart production equipment, facilitate technology transfer and localisation, and provide training and project implementation services in Egypt and regional markets, Industry Minister Khaled Hashem said.

The project will initially focus on introducing automotive manufacturing and production-equipment technologies to Egypt, with plans to gradually localise higher-value activities such as engineering and design, metal fabrication, assembly, maintenance, and after-sales services, he said.

The government will also study using the platform to attract Chinese and international companies to Egypt to complete automotive industry value chains and strengthen the capabilities of local manufacturers and workers in smart manufacturing and industrial engineering, Hashem said.

Farid said the agreement was part of a strategy to attract global companies with advanced supply chains, promote technology and knowledge transfer, deepen local manufacturing, reduce pressure on foreign-currency resources, and increase exports.

The platform is expected to strengthen Egypt’s automotive and components manufacturing capabilities and support the development of a regional base for engineering and manufacturing automotive plant equipment and smart manufacturing solutions, Investment Minister Mohamed Farid said.

The government also aims to support car and component manufacturers in establishing new plants, expanding production capacity, and increasing the share of locally produced components, Hashem said.

Farid said the government was seeking to facilitate the entry of major global companies into Egypt by streamlining investment procedures and providing incentives and services.