CAIRO: Siemens Egypt is eying opportunities for investment in the electronic auto parts segment, in view of the recent government incentives for operators in this industry, says Mohammad Al-Mahdy, chairman of Siemens Egypt.
He added that his company had received an offer from the EU-financed Industry Modernization Center to start an electronic auto parts manufacturing business, noting that such parts would comprise 40 percent of modern vehicles and that opportunities were large for the business in the local and regional markets.
Al-Mahdi estimated Siemens’ annual turnover for manufacturing of electronic auto parts at 6 billion euros, with the majority of its production being distributed in the European market.
Annual exports of Egyptian auto parts manufacturers amount to nearly $105 million.
The chairman of Siemens Egypt said his company is mulling over three alternative approaches for manufacturing electronic auto parts in Egypt. ‘We may install a new production line in our existing factories for electronic parts, set up a specialized plant, or start up a joint venture with a local partner,’ he explained.
The Egyptian Ministry of Trade & Industry is poised to launch a new integrated industrial zone for auto parts to be manufactured in 6th of October City to serve automotive manufacturers in the region.
Mohammad Fatehy, assistant of the Minister of Trade & Industry, said the government would provide a variety of incentives to international producers of auto parts that could include free industrial land space with utilities, in addition to support from the Egyptian Export Promotion Fund.
Cairo is also expected to host an international event for major international auto parts manufacturers, producing parts for the German Volkswagen, BMW and Mercedes Benz next month, to discuss investment opportunities in the planned specialized industrial zone in Egypt.
Egypt has as much as 300 plants for auto parts manufacturing with combined investments estimated at LE 2 billion and total workforce of 16,000 workers.