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Agreement signals support for auto hub in Suez Zone

Home Manufacturing & Processing Automotive Agreement signals support for auto hub in Suez Zone

VOLKSWAGEN and the government of Egypt have signed an agreement to work together to develop a feasibility study on a shared automotive painting facility within the East Port Said Industrial Zone in the East Port Said Automotive Zone in Cairo.

The agreement was signed by the chairman of the General Authority for the Suez Canal Economic Zone, Waleid Gamal Eldien, chief executive officer of the Sovereign Fund of Egypt, Ayman Soliman, managing director of the East Port-Said Development Company, Dr Ahmed Fikry and chairperson and managing director of Volkswagen Group South Africa (VWSA), Martina Biene in the presence of the Prime Minister of Egypt, Dr Mostafa Madbouly at the headquarters of council of ministers in the new administrative capital. The signing ceremony was also witnessed by the Minister of Planning and Economic Development, Dr Hala Al-Saeed.

The government of Egypt has shown earnest commitment to the advancement of localising the automotive industry in Egypt. The commitment was duly formalised in June 2022 with the announcement of the Automotive Industry Development Programme (AIDP). The AIDP aims to foster local value addition, increase vehicle production volume, boost and attract investment and improve emission standards in the automotive sector.

Volkswagen has expressed interest in expanding its presence in the Egyptian market by participating in the AIDP. As such, Volkswagen intends to explore the feasibility of the establishment of a multi-model automotive painting facility in the East Port Said Automotive Zone (EPAZ). The EPAZ is planned to become a world-class automotive manufacturing and logistics hub with the East Port Said Industrial Zone. It is situated within the Suez Canal Economic Zone of Egypt.

Biene commented: “Volkswagen is excited about the prospects of establishing its presence in the Egyptian market as part of its long-term growth plans on the continent, especially in North Africa. The AIDP is one of the most progressive automotive programmes on the continent which Volkswagen intends to be part of. The signing of the strategic cooperation agreement with the Government of Egypt is the continuation of Volkswagen’s strategy to play a pioneering and leading role in the development of the automotive industry in Africa.”

Volkswagen has been manufacturing vehicles in South Africa for over 72 years. It has three other vehicle assembly facilities in sub-Saharan Africa. The facilities are in Kenya, Rwanda and Ghana. In addition, Volkswagen has a presence in 17 countries in sub-Saharan Africa where it sells passenger and commercial vehicles through licensed importers.

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