Chinese factory FAW in the "10th of Ramadan" area in Egypt for the production of cars

[The SC]

The Chinese company FAW has decided to set up a factory for the production of transport vehicles and minibuses in Egypt in cooperation with its agent in Egypt Giushi Motors Company in the tenth of Ramadan, pointing out that the actual production of the company will start in early March
The minister's remarks came during a meeting with Zhang Shijian, vice chairman of the Chinese FAU Company in Beijing. The meeting was attended by Engineer Ahmed Abdul Razek, Chairman of the Industrial Development Authority and Minister of Trade Commissioner Mamdouh Salman, head of the Egyptian Trade Bureau in Beijing.

The minister said that his meeting with the company's delegation which visited Cairo last June to discuss and study the Egyptian market on the ground and determine the investment directions of the company has contributed to the company's decision to be present in the Egyptian market during the next stage.

"The company's decision to be in the Egyptian market is a result of the company's strong belief in the strength of the Egyptian market, which is one of the most promising markets in the Middle East and Africa." The company's production will focus on meeting the needs of the Egyptian market of transport vehicles, As well as export to the neighboring markets, noting that the company plans to produce passenger cars, whether microbus or Malachi cars, during 2018.

He pointed out that FAW is one of the leading companies in the industry of passenger cars and heavy transport, which is the third largest industrial institution in China, ranked No. 111 in the list of the top 500 companies in the world and the volume of sales is 18 million vehicles in China and around the world.

He also held a meeting with Matt Li, Vice Chairman of Sayak Motor Company, during which he discussed the company's desire to be in the Egyptian market during the next phase, as it seeks to find an Egyptian partner to help it develop its trade and investment cooperation in the Egyptian market.

The Minister affirmed the ministry's readiness to provide all necessary support to the company's entry into the Egyptian market for manufacturing cars, not for assembly, especially as the current direction of the state aims to deepen the automotive industry and put Egypt on the map of the global automobile industry and increase exports of Egyptian cars to the world markets, as well as expansion in the feeder industries, pointing to the new investment law that provides huge incentive packages for the automobile industry in all governorates and industrial zones at the level of the Republic.

For his part, Matt Li, Vice Chairman of the Board of Directors of Sayak Motor Company said that the company considers Egypt an important and pivotal country in this region and wishes to develop its trade and investment cooperation with them in the next stage. He pointed out that the company has established a representative office in Egypt, And the Middle East markets.

He pointed out that the companies of Sayak Motor take the largest share of the volume of car sales in the Chinese market, the volume of sales in 2015 was about 6 million cars, and also focuses its activities in the design and production of taxis and commercial vehicles and spare parts, and has business partnerships with major International Car Companies including General Motors, Volkswagen, Iveco and Volvo. He said that the company has many industrial bases in China, it has a car assembly plant in the UK and exports its products to many countries in the world.

The Minister of Trade and Industry, Tareq Qabeel concluded his visit to the People's Republic of China, during which he inaugurated the exhibition of China and the Arab countries on behalf of the President of the Republic, where Egypt was the guest of honor of this year's exhibition held in Yinchuan City, Ningxia Autonomous Region. As the minister has conducted many meetings with major Chinese companies in a number of fields, as well as a meeting of the technical committee to raise production capacities between Egypt and China.

The choice of Egypt as a production line for Chinese cars has two advantages. First, to escape the high customs tariffs on cars in Egypt. Where the price of the 1.6L Peanlian car is 40%, for cars from 1.6L to 2.0 L it is 100%, and the cars with capacity of more than 2.0 L 135%. However, the Egyptian government imposes low taxes on imported spare parts, with the engine and chassis there is a customs imposed tax of 2% and the rest of the spare parts remaining 5%. Second, the geographical advantages of Egypt, where Chinese automakers can take Egypt as a base to influence the surrounding countries in the region. Zhang Lin, vice president of Geely, a Chinese car giant, said it can take advantage of the cost of labor and Egypt's strategic position on the Mediterranean rim.

Note that BYD and LADA are manufactured in Egypt too.. With a local manufacturing rate exceeding 65% in Egypt and the rest being assembled..

http://arabic.people.com.cn/31660/7980215.html