Egypt has signed two agreements with China’s Dongfeng Motor Corporation to rebuild the Nasr Automotive Manufacturing Company factory from the Ministry of Public Enterprise to manufacture Egypt’s first electric vehicle.
Hisham Tawfik, Minister of Public Enterprise Sector, commended the scope and strength of ties between Egypt and China, which have witnessed remarkable growth in recent years, during the signing ceremony held via video conferencing, in a statement by the Egyptian Cabinet.
“Today marks the beginning of Nasr’s launch towards the project to locate the electric car industry in Egypt,” Tawfik said.
“This project aims to conserve the environment by reducing reliance on fossil fuels and thermal emissions that have a negative effect on people and the economy, as it keeps pace with the growing global trend in electrical transport,” he said.
The signing included a framework agreement for the production of electric cars in Nasr in collaboration with Dongfeng, one of the four largest car manufacturers in China, which produces about 3.5 million cars annually with its major automotive partners worldwide.
The signing included an agreement to renew the Nasr plant with the latest technology and production methods, he said. An agreement is currently underway to create a research and development center with Dongfeng and the Egyptian company Brightskies Technologies, he added.
The project aims to produce 25.000 cars annually in one shift and, according to market studies, the volume of demand is expected to increase with the government’s expected support and incentives to double that number, he said.
After proving its value in the local market, the project aims to take advantage of export opportunities to the regional market, he said, underlining that it is intended to start production at Nasr within a year from the date of this agreement.
Meanwhile, Liao Liqiang, Chinese Ambassador to Cairo, commended in his speech the fruitful and continuous cooperation between Egypt and China, one of which is the framework agreement between Nasr and Dongfeng.
He underscored the importance of encouraging collaboration between Egyptian and Chinese businesses, as well as moving towards the use of renewable energy and the localization of electric car technology in Egypt.
