Schneider Electric plans to raise Egypt investments by €8 million in 2023
French industrial group Schneider Electric said on Sunday it plans to increase its investments in Egypt by an additional €8 million ($8.6 million) throughout 2023. This move is part of the company’s strategy to boost its operations in Egypt geared toward achieving sustainable development and accelerating digital transformation across various sectors.
The additional investments include the expansion of the Badr factory, the biggest of its kind in the region, and the new production lines covering a total area of 10,000 sqm, Schneider Electric said in a statement.
The new investment is an extension of Schneider Electric’s long-term strategy for the Egyptian market, which saw a total of €30 million in 2020; whereas €10 million were used to add a production line for manufacturing electricity distribution panels, while €20 million were allocated for capital increase and other investments.
In an effort to localise manufacturing and increase the percentage of local components, which currently stands at 40-60 percent for all low and medium-voltage products manufactured at the factory, Schneider Electric said it had initiated expansion plans for its flagship Badr Factory.
“These products are utilised in various sectors, with over 30 percent of the factory’s production exported.”
Achieving another milestone in 2023, the portfolio of countries to which Badr Factory exports its products significantly grew from 14 countries last year to more than 30 countries worldwide, including the UAE, KSA, Morocco, Tunisia, Alegria, Kenya, and Senegal, among others.
“Egypt has significant economic potential in the energy sector and is a key market in the region.” Sebastien Riez, Cluster President of Schneider Electric Northeast Africa, and Levant, said.
“We are fully committed to supporting sustainable development in Egypt through our investments in infrastructure and industry. These new investments demonstrate our commitment and confidence in the Egyptian market.”
“Our growth-oriented investment plan aims to expand our network of partners from the public and private sectors and participate in more projects that ensure energy efficiency and sustainability across different industries, including smart buildings and cities, water treatment, the industrial sector, and others. We seek to increase the local component in our products to meet local and regional export demands in line with the Government’s 2030 vision.”
Egypt is a key market for Schneider Electric in the Middle East and Africa regions. With a long history of success in the Egyptian market, the company launched its operations in the country in 1987 and has invested €300 million over the course of 35 years. In addition to the Badr factory, Schneider Electric has several assets in Egypt, including the Distribution Centre in the 10th of Ramadan City and the Engineering Excellence Centre.
Schneider Electric said it aims to strengthen its footprint and role in more strategic projects focused on achieving energy efficiency and sustainability in different industries. Its portfolio of successful projects includes the partnership with the Egyptian Ministry of Electricity and Renewable Energy to renovate and digitise the national distribution grid, supplying electricity distribution systems to the Benban Solar Park – the largest of its kind in the world, involvement in the Jabal Al-Zait wind farms, providing electrical solutions to Al Hammam wastewater treatment plant in New Delta, and delivering electrical maintenance and automation solutions for the Suez Canal Tunnels. The company has also established multiple partnerships with the private sector across real estate, industrial, and commercial sectors.
