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China’s GWM inches closer to SCZone factory: Chinese automotive and truck manufacturer Great Wall Motors (GWM) is reportedly inching closer to setting up a factory to produce vehicle and spare parts in Egypt’s Suez Canal Economic Zone (SCZone), according to a report carried by Egypt’s state information service. GWM will look to produce multiple car models to supply to the Egyptian market, while also boosting its exports to regional and global markets. The manufacturer also expressed interest in working with local Egyptian companies in the automotive sector to boost their respective production capacity and export capabilities.
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We knew this was coming: GWM made a request for a 1 mn sqm plot of land for an auto factory back in September.
Where things stand now: Egypt is committed to offering its full support for the project, including providing investment incentives available in the SCZone and under a national export support scheme, Prime Minister Mostafa Madbouly said during a meeting with GWM VP Ming Xian Jun. The SCZone is also prepared to facilitate arrangements for the development of a factory, on the condition that the agreement is inked before the end of this year, Madbouly added.
Egypt’s rising automotive demand: Egypt’s car imports spiked some 46% y-o-y to USD 1.69 bn, up from USD 1.15 bn, in the first eight months of this year, according to a statement released last week. The Egyptian government is looking to bolster its domestic automotive industry to enhance the availability of vehicle inventory in the country, the statement added.
About GWM: Hong Kong-listed GWM specialized in parts manufacturing and export of pick-up trucks, SUV and passenger vehicles, according to their website. The firm operates in over 60 countries worldwide, with over 500 stores. The company hosts over 400 overseas networks spanning over a range of regional markets in the Middle East, Africa, South America, Asia Pacific, Russia and Australia.
Making regional moves: GWM launched its first regional parts distribution center in the UAE back in January last year, in a means to streamline its local logistics cycle and parts range. This came on the heels of the establishment of its first middle east OEM office in Dubai the year prior.
