Nissan Egypt has announced a major $45 million investment deal to expand its local manufacturing operations. The new initiative will involve the production of a third vehicle model at its factory in Egypt, a move that highlights the company’s commitment to increasing its local production capacity and boosting exports. The investment agreement was formalized at a ceremony attended by Prime Minister Mostafa Madbouly in Egypt’s New Administrative Capital.
- $45 Million Investment: Nissan Egypt will invest $45 million to begin the local production of a new vehicle model at its existing plant. This marks a significant step in the company’s expansion efforts in Egypt, which has become a key hub for automotive manufacturing in the region.
- Local Component Ratio Over 54%: The new vehicle model will feature a local component ratio exceeding 54%, an important milestone in Nissan’s strategy to enhance domestic production. This initiative is designed to strengthen the Egyptian automotive sector by increasing the use of locally sourced parts and materials.
- Boosting Export Capacity: As part of the expansion, Nissan Egypt is also focusing on increasing its export activities. The new model will be exported abroad, and the company aims to increase its export figures by 50% in the current fiscal year compared to 2023. Nissan Egypt has already exported more than 16,000 units of its locally assembled Sunny model and expects to generate over $150 million in export revenue.
- Capacity Expansion: In addition to the $45 million investment, Nissan Egypt is committing $2 million to increase its production capacity. The goal is to exceed 30,000 units annually by 2025, further strengthening Nissan’s footprint in the Egyptian automotive market.
A Strategic Move for Nissan
Nissan’s investment in Egypt reflects the growing importance of the Egyptian market as a manufacturing and export hub for the company. The agreement also marks a significant milestone for Nissan in Egypt as it celebrates its 20th anniversary of operations in the country. With a fully integrated manufacturing facility, Nissan has established a strong presence in Egypt, which has become a key base for the company’s operations in Africa and the Middle East.
Government Support and International Cooperation
The signing ceremony was attended by key figures, including Hassan El-Khatib, Minister of Investment and Foreign Trade, and Fumio Iwai, the Japanese Ambassador to Egypt. The deal was officially signed by Jordi Vila, President of Nissan Africa, on behalf of Nissan Global. The government’s support for the automotive sector, combined with Nissan’s investment, is expected to contribute significantly to the growth of Egypt’s manufacturing industry and create new job opportunities.
Future Prospects
Nissan Egypt’s decision to expand its production capabilities and increase exports is expected to drive further growth in the local economy. By enhancing local production and boosting export revenue, the company is not only strengthening its position in the competitive automotive market but also contributing to Egypt’s broader economic goals, such as reducing trade deficits and increasing foreign exchange inflows.
Nissan Egypt’s $45 million investment marks a pivotal moment in the company’s ongoing efforts to expand its operations and contribute to Egypt’s industrial growth. With a focus on increasing local content, expanding export capacity, and enhancing production capabilities, Nissan is well-positioned to play a significant role in Egypt’s economic development in the coming years.
