Egyptian Minister of Military Production Mohamed Morsy and the Italian Ambassador to Egypt Michele Quaroni attending the signing ceremony in Cairo on Wednesday 16 February, 2022. (photo courtesy of Egyptian Cabinet)
A consortium comprising Egypt’s National Organisation for Military Production, El-Maasara for Engineering Industries, and Italian company Landi Renzo, which produces liquefied natural gas (LNG) and natural gas systems for cars, signed the agreement in Cairo, according to a statement by the military production ministry.
The joint venture aims to establish and operate an industrial complex for the manufacturing and assembly of compressed natural gas (CNG) groups for the automobile market, according to the statement. This includes two-fuel passenger vehicles, bi-fuel engines, medium and heavy-duty trucks of all types and sizes, in addition to the conversion of vehicles that run on fuel and diesel to be able to run on CNG or LNG instead.
The agreement is in accordance with the state’s plan to shift energy dependence to cleaner resources, including natural gas and diesel, the statement added.
Egyptian Minister of Military Production Mohamed Morsy witnessed the signing ceremony in the presence of Michele Quaroni, the Italian ambassador to Egypt, and the chairmen of the boards of directors of the Egyptian International Gas Technology (GASTEC), the Natural Gas Vehicles Company (Car Gas), and TAQA Holding, as well as representatives of the Italian Trade Agency.
The agreement was signed by Mohamed Salah El-Din Mustafa, vice chairman and managing director of the National Organisation for Military Production, Abdel-Moneim Hendawy, chairman of the board of directors of El-Maasara Company for Engineering Industries, and Cristiano Musi, Landi Renzo’s CEO.
Morsy stressed that the agreement is in accordance with President Abdel-Fattah El-Sisi’s directives to encourage local manufacturing.
For his part, the Italian ambassador Quaroni said that Egypt is one of the most promising markets in the world for investments.
Military production spokesman Mohamed Eid Bakr explained that this agreement is part the ministry’s policy to cooperate with international companies to transfer and localize the latest manufacturing technologies.
Egypt is working on a host of projects to preserve the environment by making use of the country’s plentiful natural gas production. The boom in the North African country’s gas production has been supported by huge gas discoveries and production in the Mediterranean.
Egypt has been exerting constant efforts to create and develop an environment-friendly industry by localising modern industrial technologies and creating professional technical cadres to fight pollution and reduce harmful emissions, including the Go Green initiative, which offers fuel-powered car owners a replacement for their old cars with new hybrid ones.