Ghabbour Egypt secures EGP1.2 bln funding for expansion
Ghabbour Egypt, a subsidiary of GB Group, has secured a 1.2 billion Egyptian pounds medium-term financing facility to establish and develop an assembly plant in Sadat city, according to the company’s stock exchange filing on Sunday.
A consortium of Egyptian banks; Banque Misr in collaboration with HSBS Egypt, and Arab Investing Bank, have granted the joint financing to the company that covers 60 per cent of the total projected investment, worth about 1.9 billion Egyptian pounds.
Moreover, the funding aligns with the national strategy to support local production and enhance the domestic component of the automotive industry.
The new plant is anticipated to reach an annual production capacity of 50,000 vehicles, with the project’s goal being to increase Ghabbour Egypt’s production capacity.
As a result, the GB Corp’s factories may be able to produce more than 100,000 cars locally annually. The move to boost the production capacity comes in response to the growing market demand expected in the future and is aimed to enhance the availability of diverse transport options in local markets.
“We believe that the establishment of our Sadat City plant will enable the company to better serve the Egyptian market by providing high-quality locally assembled vehicles at competitive prices” Nader Ghabbour, CEO of GB Group stated.
