Prime Minister Moustafa Madbouli directed officials to expand the automotive industry in Egypt, in light of the formation of the Supreme Council for Automotive Industry and the incentives that have been approved, expressing his willingness to listen to the council’s visions and meet their needs.
This came during a meeting between the premier and representatives of ‘Nissan Egypt’ to support the expansion of local manufacturing.
The meeting was attended by Deputy Prime Minister and Minister of Industry and Transport Major General Kamel El-Wazir, Minister of Investment and Foreign Trade Hassan El-Khatib, Managing Director of Nissan Egypt Mohamed Abdel Samad, Director of Nissan Egypt Factory Engineer Walid Fathy; Engineer Sami El-Mahlawi, General Manager of Product Development at Nissan Egypt, along with other government officials.
Madbouli welcomed the company’s representatives, confirming that he had met with them several times before. He also noted that the Deputy Prime Minister for Industrial Development h
ad visited the company’s factory in Egypt, praising the noticeable progress and advanced technologies there.
For his part, Wazir stressed the state’s interest in localising industry in general. He added that he regularly visits factories according to a planned programme to overcome obstacles and promote work in various industrial sectors, noting that the government’s goal is to expand different industries and provide raw materials and production inputs to manufacturers from Egyptian products.
Meanwhile, investment minister explained that efforts are being made to provide the necessary support for the industry to expand and grow, as this goal is a priority for the state. He also highlighted efforts to encourage and protect local industry, which in turn contributes to meeting local needs and increasing exports.
Engineer Mohamed Abdel Samad, Managing Director of ‘Nissan Egypt,’ expressed his happiness with this renewed meeting, noting that the company has been in Egypt for 20 years. He mentioned that the visi
t of the Deputy Prime Minister for Industrial Development was the first ministerial visit to the company’s factory in Egypt, praising the significant support provided by the government during this phase to the industrial sector in general, and the automotive industry in particular, in light of Egypt’s strong interest in localizing the automotive industry and seeking to provide the necessary components to achieve this goal.
He presented a report on the company’s performance in Egypt, explaining that Nissan is the leading company in the Egyptian market in 2023, with a market share of 13.5%, as the largest Japanese investment in the Egyptian private sector. The company’s investments in Egypt amount to about dlrs 235 million, with a production capacity of 50,000 cars annually, employing about 950 employees, including 790 technicians and 160 administrative staff, in addition to 4,000 indirect jobs.
Abdel Samad stated that ‘Nissan Egypt’ has succeeded in increasing its global competitiveness by exporting cars and
spare parts and employing its personnel internationally. ‘Nissan Egypt’ has exported over 10% of its human resources to various branches and offices of ‘Nissan’ worldwide, in several specialties. He confirmed that Egyptian expertise leads in Africa and holds some positions at the parent company.
The Nissan Egypt factory has also been approved as an export hub for passenger cars to Africa and some Arab countries, with over 15,000 locally manufactured ‘Sunny’ models exported since August 2022. The company aims to increase export volume by more than 50% and raise the dollar revenue, currently exceeding dlrs 120 million, he added.
The Managing Director of Nissan also presented the investments and plans of Nissan in the Egyptian market in the short and medium terms, explaining that ‘Nissan Egypt’ plans to inject investments of about dlrs 55.9 million by 2026 in various activities to enhance its presence as a market leader in Egypt.
He pointed out that after Nissan Egypt was chosen to be a hub for exporting pass
enger cars to Africa, the company decided to establish a free zone company at the Port of Alexandria to facilitate the export of cars and parts and provide foreign currency. The targeted area for this is about 6,000 square meters, serving the export of locally manufactured cars and parts, as well as integration with imported ones. The implementation is planned to start in November 2024, with investments reaching dlrs 2 million, he said.
In this context, Engineer Abdel Samad also discussed the details of the new model the company targets, with plans to manufacture 10,000 units for the local market and 7,000 units for export in the first year, with planned annual increases to meet local demand and external markets. He noted that the company is also considering expansion through the production of other models needed by the market.
The Managing Director also discussed Nissan Egypt’s contribution to sustainability programs, noting that the company currently has a 2-megawatt solar power plant in operation, with a
n additional 1.8 megawatts under implementation, aiming to reach 3.8 megawatts by September 2024.
Nissan Egypt also has a good opportunity to add 2.2 megawatts by the fiscal year 2025, reaching a capacity of 6 megawatts, the official said, adding that the company has decided to design a water treatment unit and reuse treated water for irrigation purposes, which will save 28,000 cubic meters of fresh water annually, making it the first car company to do so.
During the meeting, Abdel Samad, Managing Director of Nissan Egypt, mentioned that the parent company ‘Nissan’ agreed to study the Deputy Prime Minister for Industrial Development’s proposal regarding the establishment of a technical school affiliated with ‘Nissan’ in Egypt. The proposal has been approved for study with the authorities concerned and the company has communicated with its branch in England to benefit from their experience in a similar program with the British government.
Source: State Information Service Egypt