Japan's Yazaki to establish factory in Egypt with initial investments of €20 million

Ahram Online , Tuesday 5 Apr 2022

Japan's giant automotive components producer Yazaki Europe Limited is set to establish a factory in Egypt's Fayum governorate, southwest of the capital Cairo, to produce braided wires for cars, with initial investments of up to 20 million euros.

signing agreement
Egyptian Prime Minister Mostafa Madbouly and Ambassador of Japan in Cairo Oka Hiroshi witnessing the process of signing agreement on Tuesday 5 April, 2022. Photo courtesy of Egyptian Cabinet Facebook page.

The step comes after a memorandum of understanding was signed on Tuesday between the Japanese company and Egypt's General Authority for Investment and Free Zones (GAFI), in the presence of Egyptian Prime Minister Mostafa Madbouly and Ambassador of Japan in Cairo Oka Hiroshi.

The MoU was signed by Mohamed Abdel-Wahab, CEO of GAFI, and Hans Lemmens, CEO of Yazaki Europe, a statement by the Egyptian cabinet said.

The 60,000-square-metre factory will focus on manufacturing car components such as wires and braided wires, with 100 percent of its production to be exported.

The factory's total export value is expected to hit 100 million euros annually, the statement added.

The project is set to start production by July 2023, creating around 3,000 jobs.

As per the MoU, the factory will introduce a new and innovative Japanese technology into the Egyptian market to help the country become a regional investment centre for the automotive industry.

Egypt has been seeking to localise the automobile industry.

GAFI is keen to provide all support to the Japanese company to implement its investment plan and to achieve maximum benefit from the competitive advantages in Egypt, Abdel-Wahab said.

The step will support Egypt's competitiveness in the automotive components industry, he added.

Founded in 1941, Yazaki is the world's main supplier of electrical braided wires, with 140 branches in 45 countries around the world, including Egypt. The company's sales exceed 12.5 billion euros annually.

Trade exchange between Egypt and Japan reaped $1.5 million in 2021, achieving a growth rate of 13 percent.

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