PM Madbouly said the upgrades at Semaf create an integrated industrial system that supports economic growth, saves foreign currency, opens new export markets, and builds competitive Egyptian technical teams capable of operating regionally and internationally, according to a cabinet statement.
The prime minister was accompanied by Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel Al-Wazir, Minister of Electricity and Renewable Energy Mahmoud Esmat, Minister of Public Business Sector Mohamed Shimy, Cairo Governor Ibrahim Saber, and several senior officials from the transport, industrial, and media authorities.
Representatives of companies affiliated with the Arab Organization for Industrialization (AOI) and South Korea’s Hyundai Rotem also attended, alongside Choi Byung-sun, minister plenipotentiary and consul general at the South Korean embassy in Cairo.
The delegation was received by AOI Chairman Major General Mokhtar Abdel-Latif and Semaf Chairman Major General Ahmed Shaker.
During the visit, Abdel-Latif said the inspection marked the culmination of development efforts directed by President Abdel-Fattah El-Sisi to modernize the Semaf plant in line with the Fourth Industrial Revolution and Egypt’s Vision 2030.
He said AOI has, under the New Republic, become a modern industrial hub focused on technological upgrading and advanced manufacturing.
Abdel-Latif described the project as a turning point for the national industry, noting that Semaf, founded in 1958 and the oldest specialized railway manufacturing plant in the Arab and African regions, has undergone its first comprehensive upgrade since its establishment.
He said the development plan was implemented through six main pillars.
The first focused on upgrading infrastructure and engineering facilities, including the construction of a new freight railcar factory spanning 6,000 square metres, equipped with four railway tracks, and the renewal of the plant’s internal rail network extending 14 kilometres.
The second pillar is the modernization of production lines and equipment through the introduction of advanced digital manufacturing machinery.
The third involved establishing a digital machining centre, equipped with a German-made, five-axis automated machine, the first of its kind in Egypt. It is used to manufacture high-precision moulds and large spare parts for the railway industries, as well as for ships, turbines, power stations, and iron, steel, and cement plants.
The fourth pillar focuses on digital transformation, including the establishment of an advanced main data centre at Semaf and the development of IT infrastructure to link production lines and digitize all factory operations.
The fifth works to develop human capital by upgrading the skills of engineers and technicians, while the sixth aims at expanding into global markets, supported by international accreditation and quality certifications in railway manufacturing.
During the tour, Madbouly listened to a detailed presentation on the plant’s development phases and watched a documentary titled “Heritage and Development," which reviewed the upgrade timeline, production lines, and newly introduced digital manufacturing technologies.
Officials said the plant now operates through an integrated network connected to design and data centres, alongside upgraded workshops and operating systems.
The presentation also highlighted broader infrastructure works, including upgrades to gas, electricity, and water networks, as well as administrative and service buildings, to improve the working environment.
Officials added that these measures have increased production capacity and diversified output to meet Egypt’s needs for railway and metro cars at competitive international standards.
Abdel-Latif said the upgraded manufacturing capabilities allow Semaf to serve a wide range of industrial sectors, especially the iron and steel sector, and reaffirmed AOI’s role as the state’s main industrial arm in railway and metro projects.
He noted that the organization remains committed to expanding partnerships with private-sector investors, public-sector companies, and global firms to maximize local manufacturing content and boost exports.
He concluded by thanking President El-Sisi for his continued support, Prime Minister Madbouly for his guidance, and state institutions for their cooperation with AOI’s factories and companies.
Egypt has accelerated international and domestic cooperation in recent years as part of a state-led strategy to localize the manufacture of transport systems, particularly railway and metro rolling stock.
A central pillar of this approach has been partnerships facilitated by the AOI, which serves as the government’s main industrial vehicle for technology transfer and factory modernization.
Under these arrangements, foreign manufacturers provide advanced machinery, digital manufacturing systems, and training programmes, while production and engineering capabilities are gradually transferred to Egyptian facilities.
One of the most prominent recent examples is cooperation with South Korea’s Hyundai Rotem, which has worked with Egyptian authorities and AOI-affiliated factories, including the Semaf plant, to support the localization of railway and metro manufacturing.
The partnership focuses on upgrading production lines, transferring rolling-stock know-how, and training Egyptian engineers and technicians, with officials describing it as a step toward moving from assembly to full manufacturing and export readiness.
Localization requirements have also been integrated into metro and urban rail projects overseen by the National Authority for Tunnels (NAT).
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