Volkswagen Studies Establishment of Automobile Manufacturing Complex in East Port Said

Mostafa Madbouly, Prime Minister, witnessed the signing ceremony of an agreement to study strategic cooperation regarding the establishment of the “Joint Automotive Industry Complex in the East Port Said Industrial Zone (EPAZ) between the General Authority for the Suez Canal Economic Zone (SCZone) and the Egypt Fund, East Port Said Main Development Company, and Volkswagen Africa.

The agreement was signed by Walid Gamal El Din, SCZone Chairman, Ayman Soliman, CEO of the Sovereign Fund of Egypt, and Martina Biene, Managing Director and Chairperson of Volkswagen Group South Africa (VWSA).

This agreement aims for the parties to cooperate together to develop a feasibility study related to the establishment of the “Joint Automotive Industry Complex in East Port Said.” This project would provide 2,100 direct job opportunities, in addition to more than 4,000 indirect job opportunities in feeder industries, as well as attract investments of about $240 million. 

Under the agreement, Volkswagen is also responsible for providing technical cooperation to achieve the objectives of the National Automotive Industry Development Program (AIDP).

On the sidelines of the signing, the Prime Minister stressed that the Egyptian government is keen to enhance the localization of the automobile industry within its territory, which was reflected in the official announcement of the National Automotive Industry Development Program (AIDP) in June 2022, which aims to enhance local added value, increase the volume of production, and enhance investment, improving emission standards in the automobile sector.

The Managing Director of Volkswagen Group Africa said: “Volkswagen is showing its interest in expanding its presence in the Egyptian market by participating in the National Automotive Industry Program (AIDP).

She added: “Volkswagen intends to explore the feasibility of establishing a car painting complex in the industrial zone east of Port Said. The region is planned to become a global center for automobile manufacturing and logistics services.

Biene said that Volkswagen is keen to strengthen its presence in the Egyptian market as part of its long-term growth plans on the African continent, especially in North Africa, explaining that the Egyptian National Program for the Automotive Industry is one of the most advanced automotive programs on the continent, which Volkswagen intends to be Part of.

She continued: “Signing the strategic cooperation agreement with the Egyptian government is a continuation of Volkswagen’s strategy to play a pioneering role in developing the automotive industry in Africa.”