Egypt signed a memorandum of understanding with Chinese Jiangsu Changhong Intelligent Equipment Co., Ltd on Thursday, September 3, 2026, to develop an industrial and engineering base for automotive and transportation manufacturing plants in Egypt. Prime Minister Mostafa Madbouly witnessed the signing at the government headquarters in the New Capital.
The agreement brings together the Ministry of Industry, the Sovereign Fund of Egypt and Jiangsu Changhong, in cooperation with FIDIA Automotive Engineering Systems S.R.L. Investment and Foreign Trade Minister Mohamed Farid, Industry Minister Khaled Hashem and Jiangsu Changhong President Qiu Yunjie signed the memorandum.
The project will establish a specialized platform for automotive factory engineering and the manufacturing and assembly of smart production equipment. It will also provide technical services, training, and technology transfer for projects in Egypt and regional markets.
Hashem said the plan involves gradually moving more engineering, design, metal manufacturing, assembly, maintenance, and after-sales activities to Egypt. The project could also serve as a platform to attract additional Chinese and international companies to Egypt, expand automotive supply chains and develop the capabilities of local manufacturers and Egyptian workers in smart manufacturing and industrial engineering.
Farid said the government wants to attract international companies with advanced supply chains while increasing local manufacturing, technology transfer and the domestic content of industrial production. The project is intended to support automotive and components manufacturers seeking to establish new factories or expand production capacity in Egypt.
The government also plans to develop Egypt into a regional base for automotive factory engineering, production equipment, and smart manufacturing systems, to increase domestic production and exports to regional markets. The Visit of Chinese President Xi Jinping to Egypt President El-Sisi receives Chinese President Xi Jinping