Egypt’s Investment Authority and the China’s Haier, home appliances company, signed a memorandum of understanding (MoU) to establish an industrial complex for the manufacture of household appliances and its other related industries.
At the government headquarters in the new city of El Alamein, Prime Minister Mostafa Madbouly attended the signing ceremony of the MoU between the General Authority for Investment and Free Zones and the Chinese company Haier Smart Home. The MoU entails establishing an industrial complex on an area of 200,000 square meters in the Tenth of Ramadan City, with a total investment estimated at $130 million.
The first phase of the project will include the production of air conditioners, washing machines, screens, and complementary industries, while the second phase will include the manufacture of refrigerators and freezers.
CEO of the Investment Authority, Mohamed Abd El Wahab, revealed that the new project will be fully funded through foreign direct investments, and will provide more than 2,000 job opportunities, with a production capacity of about 900,000 devices annually aimed at both meeting the needs of the local market and exporting products to African and Asian countries.
Abdel Wahab further explained that as part of this deal, the Investment Authority will be providing the necessary support to establish the project under the investment zones system, and take all necessary measures with the concerned authorities to complete the project and establish it according to the agreed timetable.
He further commented that due to Haier’s advanced technologies, Egypt’s position as an investment hub for the home appliance industry will be enhanced, increasing the chances of attracting new investors from suppliers that Haier will be dealing with during manufacturing in Egypt.
It is also worth mentioning that according to CEO of Haier Middle East, this deal will increase Egypt’s reliance on local component by 60%.
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