A memorandum of understanding was recently signed between the General Authority for Investment and Free Zones (GAFI), and Sumitomo Egypt, to establish a factory under the Free Zone framework, in the industrial Sharqiya town of 10th Ramdan. The new factory which will produce wiring harnesses for cars and vehicles, will be built over a 150,000 sq.m-land, and is projected to be the largest in the world. Managing Director of Sumitomo Egypt, Ahmed Magdy, said that the factory should start production by the end of 2023. It is expected that the new factory will export its entire production.
Sumitomo Wiring Systems Limited was established as an electrical wire manufacturer in 1917. Since then it has grown into a global business and a leading company in wiring harness for automobiles.
The MoU was signed by GAFI CEO, Mohamed Abdel-Wahab, and Managing Director of Sumitomo Egypt, Ahmed Magdy. Attending the signing ceremony were Prime Minister Mostafa Madbouly; Oka Hiroshi, Japan’s Ambassador to Cairo; and senior Sumitomo figures.
For his part, the Premier said that the Egyptian government appreciates Sumitomo’s plans to increase its investments in Egypt through establishing the new wiring harness factory. He commended the company’s plans, stressing that the new factory will help increase Egyptian exports, and offer new job opportunities. Mr Madbouly stressed the government’s keenness to offer full support to the nascent factory including anything to facilitate its establishment and operation. He reminded of a bunch of new incentives and procedural facilities that the government recently offered investors.
According to Mr Abdel-Wahab, Sumitomo Egypt exports all the products manufactured through its eight production sites, to car manufacturers in Europe and the Middle East. He also pointed out that Sumitomo Egypt is already providing some 10,000 opportunities in the Egyptian job market, and that these will increase with the company’s expansion in the Egyptian market.
CEO of Sumitomo Europe Limited said that his company has confidence in the investment climate in Egypt, as well as the support and incentive packages offered by the Egyptian government. He also reminded that Sumitomo contributes to the promotion of technical education in Egypt.
Last April, a MoU was signed between GAFI and the Japanese YAZAKI Corporation to establish a new factory for the manufacture of automotive Components in Fayoum.
11 June 2022