Egypt's government decided to halt the liquidation process of state-owned Nasr Car Manufacturing Company and plans to re-operate the firm, state-run news agency MENA reported Sunday.
Nasr stopped production in 2009.
The military production ministry is planning to operate the car manufacturing company after its financial position is revised, minister Reda Hafez said on Sunday after a visit to the plant..
"The resumption of production at Nasr factory will definitely boost Egypt's industry and will be vital to its economy," explained Hafez.
Nasr car manufacturing was founded in 1960 as the first car production firm in the Middle East. The company specialised in assembling Italian Fiat cars. It also produced the famous budget car "Shahin", a hybrid of the Turkish model of Fiat.
The government sought to liquidate the firm after its debt reached almost LE2 billion in 2009.