"Minister of Trade and Industry Launches the First Phase of Sumitomo Electric Egypt's Automotive Wire Harness Factory."

Newspaper Title: Ministry of Trade and Industry

Newspaper Number:

Thursday - 1 June 2023

Minister of Trade and Industry, Eng. Ahmed Samir, laid the foundation stone for the first phase of Sumitomo Electric Egypt's new factory in the city of Tenth of Ramadan, which will produce wire harnesses for one million vehicles annually and provide 3,500 job opportunities. The factory will specialize in manufacturing automotive wire harnesses for all types of vehicles. The event was held on behalf of Prime Minister Dr. Mostafa Madbouly and was attended by several high-profile officials, including Adel El Ghadban, Governor of Port Said, and Mr. Oka Hiroshi, Ambassador of Japan to Egypt. The factory is expected to bolster Egypt's manufacturing sector and support the country's economic growth.

The Minister emphasized that this factory represents a new milestone in the success story of Sumitomo Electric Egypt since its establishment in Egypt. The company is one of the largest global manufacturers in Egypt, with eight factories in Port Said, 6th of October, and Tenth of Ramadan, employing 12,000 workers and exporting products worth about 200 million euros. He added that the government is proud that this new factory, which is the largest of its kind in the world for producing automotive wire harnesses for all types of vehicles, is being established by the company and will cover an area of 150,000 square meters. This confirms Egypt's ability to attract major global companies to invest in the Egyptian market. The factory will meet the needs of the local market and is expected to export its products to various European and American markets.

Minister Samir emphasized that the new factory is distinguished by its integrated training center, which includes a technical school and curriculum in cooperation with the Ministry of Education. In addition, the factory will have a research center, which forms an integrated system that helps provide and qualify the required workforce for the factory and equip them with the necessary technical skills. He added that this new phase of the factory will specialize in producing wire harnesses for automotive vehicles, providing wire harnesses and electronic brains for one million cars annually, as well as creating 3,500 job opportunities.

The Minister pointed out that Egypt possesses many great potentials and components that contribute to localizing the real car industry to meet the needs of the local market and export to regional and African markets. He also stated that the government is making continuous efforts to provide an attractive investment climate in the automotive sector and its supporting industries by strengthening partnerships with the private sector.

Samir highlighted that the most important steps taken by the state in this regard include issuing the law to establish the Higher Council for the Automotive Industry, with the aim of launching a real car industry in Egypt by increasing the local component percentage and providing incentive packages for manufacturers. The government has spared no effort in promoting this industry by issuing the automotive development strategy, which includes incentives for localizing the car industry and its supporting industries under the Egyptian Automotive Industry Development Program (AIDP), which is part of the broader automotive strategy. The new program aims to maintain current assembly and manufacturing capabilities, develop them,and encourage new investments in this sector.

The Minister also noted that the automotive industry development program initially covers the assembly of passenger cars, SUVs, small trucks, and small buses, as well as research and development centers, testing laboratories, and software development centers for cars that support local production and assembly. He emphasized the government's keenness to make the Egyptian market a center for car production and its supporting industries to meet the needs of the local market and export to regional and continental markets, by providing incentive packages for local and international companies to deepen local manufacturing.

Samir added that the Ministry of Trade and Industry is keen to provide all forms of support to international car companies to produce and expand in the Egyptian market, contributing to real investments, industry localization, and providing more job opportunities for young people.

On his part, Mr. Ahmed Magdy, the Executive Member of Sumitomo Electric Egypt, expressed his gratitude to all government officials and concerned authorities for their efforts and support for the company to establish this project. He noted that the decision to establish this factory is in line with Sumitomo's vision to support the Egyptian economy by increasing the company's investments, providing new job opportunities, and adopting modern technologies to serve the industry.

Source : Ministry of Trade and Industry

Translated by Rehab Taha

Cairo Chamber