The plant will strengthen the country’s automotive sector by localising production and expanding capacity. Credit: em_concepts/Shutterstock.

Mansour Group and China’s SAIC Motor have reached an agreement to establish a $135m automotive manufacturing plant in Egypt.

The signing ceremony was attended by Egypt Prime Minister Mostafa Madbouly.

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The agreement includes a technical licensing deal for the local production of MG cars, alongside a land allocation contract for the factory in New October City.

The factory will span 126,000 m2 in the city’s industrial zone.

Prime Minister Madbouly said: “This factory represents a significant step in implementing Egypt’s national strategy for the automotive industry, which aims to boost local production and foster sustainable growth.”

The signing ceremony was also attended by key officials, including Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel Al-Wazir, and Minister of Investment and Foreign Trade Hassan El-Khatib.

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The Mansour Group aims to initiate production by the second quarter of 2026, with an initial annual output of 50,000 units and future plans to double this capacity.

Local content in the vehicles is expected to surpass 45%, aligning with Egypt’s objective to diminish import reliance and improve the domestic automotive supply chain.

Al-Wazir emphasised the advanced capabilities of the factory, which will include various specialised units like a body shop, a high-tech paint workshop, a general assembly line, and a comprehensive warehouse.

The facility will not only concentrate on car production but will also provide a spectrum of transportation solutions, thereby contributing to the overall automotive ecosystem.

The factory will be equipped with facilities conforming to international standards, including an 8,000m2 body shop, a 12,000m2 paint workshop, a 10,000m2 assembly workshop, and a utility building, in addition to a 5,000m2 warehouse.