The Chinese automotive manufacturer, Geely, has launched its first factory in Egypt, Africa. In collaboration with Auto Mobility (Geely Egypt), the firm debuted its first industrial venture in MENA in 6th October City.
According to Ahram Online, the new plant aligns with Egypt’s strategic goal of becoming a regional hub for vehicle manufacturing. The move is part of the national strategy started in 2022 for localizing the automobile industry. The strategy aspires to meet rising local demand for cars, attract global firms to invest in the Egyptian market, and boost vehicle exports.
The plant has two production lines for 'Geely' automobiles with a maximum capacity of up to 10,000 vehicles annually. This is expected to meet domestic demand and facilitate the export of around 30,000 cars from Egypt.
Ahram Online reported that Egyptian Prime Minister Mustafa Madbuli said the investment reflects foreign investor confidence in Egypt’s investment climate and the country’s capacity to overcome challenges.
Song Jim, the chairman of Geely Global Automobile and vice-chair of Geely Auto Holding, announced that the factory will produce the Emgrand 2025 Sedan and the Coolray 2025 SUV models.
In a speech, Jim said the first batch of Emgrand and Coolray vehicles will be manufactured in Egypt based on the BMA (B-segment Modular Architecture) platform developed by Geely.
He underlined that both vehicles offer excellent use of space, and positive and negative safety designs, that will ensure an excellent driving experience for Egyptian consumers.
He added that the Coolray line, whose sales exceeded one million units globally, will be assembled locally in Egypt.
During the opening, the chairman asserted that the plant is part of Geely’s effort to enhance the domestic production of cars, in line with the Egyptian government’s strategy to localize its automotive industry. Geely will continue to expand its local operations and networks in this market segment. Jim also said the factory would boost the national economy and create new job opportunities.
"Our current investments in the automotive sector stand at approximately $250 million," Jim said.
Jim shared that Geely had established over 40 sales and service centers across Egypt in a few years, which offer a wide range of vehicles, from A-class Sedans to D-class SUVs.
Geely has developed 14 major components locally, with a local content rate exceeding 45%. Jim highlighted that this showcases the firm’s intention to manufacture more parts locally in future.
He added that his plant was of particular significance for Geely and the automotive industry as it was Geely’s first CKD (Completely Knocked Down) factory in Africa and the Middle East.
Fahad Ali Al Ghanim, the chair of Auto Mobility, said, ‘We have invested up to $100 million in the manufacturing and assembly of Geely vehicles in Egypt through Auto Mobility.’
Al Ghanim thanked the Egyptian government for its ongoing efforts to improve the investment climate. He said that recent enhancements in Egypt's business environment have driven both Arab and Chinese investors to make new investments and expand current ones in the future.
Al Ghanim also emphasized the importance of the government providing substantial support for the ongoing efforts to boost Geely's vehicle exports from Egypt to global markets.
In return, Prime Minister Madbouly said the Egyptian government was committed to fully supporting the establishment of this hub. He nodded toward the government's previous incentives to boost investments in the automotive sector.
Geely Auto Group is headquartered in Hangzhou, China. The company, which was founded in 1997 as a subsidiary of Zhejiang Geely Holding Group, is a prominent automobile manufacturer. The group oversees several well-known brands, such as Geely Auto, Lynk & Co, Proton Cars, and Geometry.
Source: https://english.ahram.org.eg/
