The new manufacturing facility strengthens Egypt’s ambitions to become a regional industrial hub. Meanwhile, expanding Siemens’ local production footprint after more than a century in the market.

Siemens, a technology multinational, has inaugurated its first wholly owned factory in Egypt, investing USD 6.9 million (EGP 350M) in a facility that will produce medium voltage switchboards and automation systems. 

Why You Should Care

The investment signals growing confidence in Egypt’s manufacturing sector as multinational companies increasingly look to the country as a production and export base. Beyond manufacturing, Siemens is also investing in workforce development, reinforcing Egypt’s role in regional industrial supply chains.

The Details

In an interview with Alarabiya Business, Siemens Egypt CEO Mostafa El Bagoury said the factory marks the company’s first wholly owned manufacturing facility in Egypt. This comes after more than 125 years of operating through local manufacturing partners.

The facility has already begun production and will initially serve domestic demand before expanding into export markets. Furthermore, it plans to gradually increase both production capacity and the number of products manufactured locally.

The first phase includes the launch of the Siemens Energy Academy, which will train technical and engineering talent working at the factory as well as employees of the company’s partners and customers in Egypt.

The factory has an initial production capacity of around 2,000 electrical panels. Meanwhile, locally sourced components currently account for approximately 40% of production. Furthermore, the company aims to increase local content over time.

The Ripple

Siemens said it plans to use Egypt as a regional hub serving Africa and the Middle East. It is leveraging the country’s strategic location, logistics infrastructure, and access to the Suez Canal.

The CEO indicates that Egypt’s large infrastructure projects, including the high-speed electric railway, continue to strengthen the country’s appeal to industrial investors despite ongoing geopolitical uncertainty across the region.

What to Watch

Future expansion plans for the factory remain under review, with Siemens expected to announce additional investments as it scales local manufacturing and raises the share of locally sourced components. 

Meanwhile, the company expects the first phase of Egypt’s high-speed electric railway to enter service next year, marking another milestone in one of the country’s largest infrastructure projects.