By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Banque Misr to launch green investment fund in 2024
    Banque Misr to launch green investment fund in 2024
    September 23, 2023
    Youssef Boutros-Ghali, the former Egyptian Minister of Finance,
    Former Egyptian Finance Minister Youssef Boutros-Ghali joins Concord International Investment Group
    September 22, 2023
    Mountain View Sets New Standards for Life Experiences Built On the Science of Happiness at iCity
    September 22, 2023
    Egypt's Emigration Minister meets with founding board of Egyptians Abroad for Investment Company
    Egypt’s Emigration Minister meets with founding board of Egyptians Abroad for Investment Company
    September 21, 2023
    ABB allocates €13bn for green transformation by 2030
    ABB allocates €13bn for green transformation by 2030
    September 21, 2023
  • Politics
    PoliticsShow More
    Egypt, Greece, and Cyprus stress coordination on gas, regional issues
    Egypt, Greece, and Cyprus stress coordination on gas, regional issues
    September 23, 2023
    CCCPA, African Union train officials on ‘Climate Responsive Programming for Sustaining Peace’
    CCCPA, African Union train officials on ‘Climate Responsive Programming for Sustaining Peace’
    September 22, 2023
    Egyptian Health Minister highlights country's interest in local drug manufacturing
    Egyptian Health Minister highlights country’s interest in local drug manufacturing
    September 21, 2023
    Egypt leads meeting to urge global support for Sudan’s humanitarian crisis
    Egypt leads meeting to urge global support for Sudan’s humanitarian crisis
    September 20, 2023
    Egypt and EU co-chair GCTF meeting, reaffirm commitment to fighting terrorism
    Egypt and EU co-chair GCTF meeting, reaffirm commitment to fighting terrorism
    September 20, 2023
  • Interviews
    InterviewsShow More
    Microsoft Egypt aims to provide advanced AI models, build solid AI ecosystem: Mirna Arif
    Microsoft Egypt aims to provide advanced AI models, build solid AI ecosystem: Mirna Arif
    September 18, 2023
    I love privacy, and I am not concerned about competition: Yasmine Sabry
    I love privacy, and I am not concerned about competition: Yasmine Sabry
    September 14, 2023
    Sustainability, digital transformation at the heart of our strategy: Heidelberg Materials Egypt
    Sustainability, digital transformation at the heart of our strategy: Heidelberg Materials Egypt
    September 12, 2023
    India welcomes Egypt's BRICS membership: Boosting trade, investment, and access to strategic commodities
    India welcomes Egypt’s BRICS membership: Boosting trade, investment, and access to strategic commodities
    September 11, 2023
    The box office is not a measure of success: Basma Hassan
    The box office is not a measure of success: Basma
    September 6, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: Public enterprise sector ministry to launch promotional tour to develop El Nasr Automotive
Share
Notification
Latest News
Banque Misr to launch green investment fund in 2024
Banque Misr to launch green investment fund in 2024
Business
Egypt, Greece, and Cyprus stress coordination on gas, regional issues
Egypt, Greece, and Cyprus stress coordination on gas, regional issues
Politics Egypt
Nakhla Gift Shop at Grand Egyptian Museum listed as one of world's best by Financial Times
Nakhla Gift Shop at Grand Egyptian Museum listed as one of world’s best by Financial Times
Culture
Youssef Boutros-Ghali, the former Egyptian Minister of Finance,
Former Egyptian Finance Minister Youssef Boutros-Ghali joins Concord International Investment Group
Business
CCCPA, African Union train officials on ‘Climate Responsive Programming for Sustaining Peace’
CCCPA, African Union train officials on ‘Climate Responsive Programming for Sustaining Peace’
Politics
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Automotive > Public enterprise sector ministry to launch promotional tour to develop El Nasr Automotive
Automotive

Public enterprise sector ministry to launch promotional tour to develop El Nasr Automotive

Mostafa Fahmy
Last updated: 2018/12/03 at 10:34 PM
By Mostafa Fahmy 9 Min Read
Share
SHARE

The ministry of public enterprise sector will conduct, in cooperation with the Egyptian Commercial Service Office )ECS(,a promotional tour in a number of countries to attract bids for the development of the El Nasr Automotive Manufacturing Company.

The ministry has not yet received any serious offers from China or Russia for the development of the El Nasr Automotive, Hesham Tawfik, minister of public enterprise sector told Daily News Egypt.

“All that we have received does not qualify to be described as a serious offer, so we will cooperate with the ECS overseas offices to directly contact car companies,” he added.

The minister did not disclose the identity or nationality of the companies to be directly addressed, saying that “the ministry invited investors from all countries recently and will open the door soon for offers.”

In September, Tawfik met with the acting Russian trade representative in Cairo, Nikolai Aslanov, and a representative of a Russian company working in the field of heavy industries, to discuss possible opportunities for cooperation in reviving the El Nasr Automotive.

The minister told the Russian delegation that technical and administrative expertise and financial solvency of private sector partners in Russia could be used to develop the state-owned company.

During the meeting, the Russian trade representative expressed Russian automakers’ interest to participate in the development of the El Nasr Automotive and local feeding industries.

A source at the Metallurgical Industries Company, the parent group of El Nasr Automotive, said that the government aims to sign a development agreement with one of the major international companies without selling any company shares.

He added that the government is counting on that expected global company to revive El Nasr Automotive and increase dependence on local components.

Daily News Egypt quoted Head of Metallurgical Industries Company, Medhat Nafea, in October as saying that five international companies expressed their interest in participating in the El Nasr Automotive revival project sought by the government.

“The winning company that will be awarded the development agreement will work to settle and localise the car industry in Egypt, not just manufacture an Egyptian car,” he said.

Nafea explained that the winning company, in cooperation with El Nasr Automotive, will work on manufacturing between 100,000 and 150,000 vehicles for export.

He did not disclose the nationality of those five companies but said they were Asian and European.

He ruled out the possibility of an immediate mergerof El Nasr Automotive with the SMG Engineering Automotive Company, however he said it would be possible in the future if the revival project required that.

At the beginning of this fiscal year, Tawfik prepared a strategy for the development of its different subsidiaries, including El Nasr Automotive.

The strategy showed the government’s willingness to contact several international companies to implement a project that will manufacture between 100,000 and 200,000 vehicles per year at El Nasr Automotive on a profit-sharing scheme.

According to the strategy, the government seeks to contribute land and production lines in the project, while the international company will handle financing development and modernisation operations.

The government is counting on international companies to manufacture a new model at El Nasr Automotive, turning Egypt into an exporting base to neighbouring markets, similar to the Renault experience in Morocco, according to Tawfik.

The minister said in a previous press statement that the government objective for the future of automotive manufacturing depends on local components for them to be exported under the slogan “Made in Egypt”.

Furthermore, he added that the Egyptian market cannot absorb all the company’s production capacity, so it will be agreed with the international company that Egypt will export the future model to the entire region.

El Nasr Automotive was the first automobile company in Egypt and the Middle East. It was founded by late President Gamal Abdel Nasser in 1959 in Wadi Houf, ​​Helwan, as part of a larger project at the time called “From Needle to Rocket”, which aimed in its first phase to assemble cars, then manufacture.

The company is currently operating on a very limited scale through manufacturing some products to the Nasr Forging Company and the Eastern Tobacco Company.

El Nasr Automotive suffers annual losses of EGP 12m. There are still 140 employees in security and warehouses after the government decided to stop the company’s production in 2010.

The ministry is currently considering a merger of El Nasr Automotive with SMG Engineering Automotive Company in case the international company wants to manufacture 200,000 vehicles per year, given that the area of both companies adds up to 850,000 sqm.

The former Minister of Public Enterprise Sector, Ashraf El-Sharkawy, agreed with a Chinese company in January to implement the project. However, the following Minister Khaled Badawy cancelled the project when he took over. He announced in a press conference that the company was suffering from many problems which hinder its ability to manufacture an Egyptian car that can compete internationally.

Tawfik has revived this plan with that tour, stressing the ministry’s intention to continue developing the automotive company.

The Metallurgical Industries Company’s board member, Khaled El-Feky, said that Tawfik showed a real desire to develop the company as soon as possible.

He added that the development plan has several stages, the first being to expand in manufacturing spare parts and auto paints, then manufacture tractors and assemble global models with high rate of local components.

The Romanian Tractor Universal 650 Braşov signed an agreement with El Nasr Automotive in September and Hulwan Iron Foundries (previously Factory 9) to manufacture and assemble Romanian tractors in Egypt after an absence of over 35 years.

In conjunction with the plan, the company’s employees proposed starting an anti-rust production line to be manufactured for others or through leasing.

A source in the company told Egypt Automotive that an investor presented a plan to the company long ago to lease the anti-rust production line for EGP 7m, which enables the company to keep its employees and commit to paying their salaries, besides at least EGP 5m of annual profit. However, the administration refused.

The source said that this production line works 24 hours a day through the operation of pumps and machinery without production so as not to freeze raw materials.

Another proposal was to offer the equipment production lines for leasing or operating for others, or even manufacture heavy transport parts. The proposal also included leasing the pistons lines or operating for other, along with offering the equipment engineering line for leasing, partnership, or operating for others.

The proposal stated that the company has a complete assembly line of cars with a capacity of 15,000 per shift, which can be well exploited, along with re-initiating the industrial training courses to prepare skilled labour.

The proposal noted that the company has production input in storage, which can be used to run for long periods of time or sell what cannot be used.

The employees said that importing spare parts of the recently produced models of Shahin, Doggan, Nassr 128, and Regata would help the company return to the market and revive its service centres. The second proposal was producing an entirely new brand of car.

You Might Also Like

Genesis G70 enhanced version starts production in Middle East

Egypt’s classic car treasures on display at Baron Hotel Cairo

Toyota Egypt Group, Edraky LLC celebrate 1st implementation of phase 1 SAP S4 Hana & Proaxia VSS globally

Abou Ghaly Motors ranks 1st in Africa, 6th worldwide as GEELY Auto agent for 2022

Egypt Automotive Summit’s 7th edition reviews national strategy to develop auto industry

TAGGED: El Nasr Automotive
Share this Article
Facebook Twitter Email Print
Previous Article Egypt to amend 33 articles of those restricting NGOs’ work
Next Article We will be supporting car industry in Egypt: EBRD
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ad image
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

Banque Misr to launch green investment fund in 2024
Banque Misr to launch green investment fund in 2024
Business
Egypt, Greece, and Cyprus stress coordination on gas, regional issues
Egypt, Greece, and Cyprus stress coordination on gas, regional issues
Politics Egypt
Nakhla Gift Shop at Grand Egyptian Museum listed as one of world's best by Financial Times
Nakhla Gift Shop at Grand Egyptian Museum listed as one of world’s best by Financial Times
Culture
Youssef Boutros-Ghali, the former Egyptian Minister of Finance,
Former Egyptian Finance Minister Youssef Boutros-Ghali joins Concord International Investment Group
Business
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?