Egypt assembles KIA cars with investment of LE 4.24M in 5 years
KIA Motors and Egyptian International Trading & Agencies signed a contract to assemble KIA Cars in Egypt with an investment of LE 4.24 million during the upcoming five years, Ministry of Industry and Foreign Trade said.
The Ministry statement clarified that the investment of the first year would amount to LE 262 million.
The agreement was signed by Chairman of KIA Motors Middle East and Africa James Kim and Chairman of the Egyptian International Company for Trading and Agencies Khaled Naseer, in the presence of South Korea's Ambassador to Korea Yoon Yu-shun and the Egyptian Minister of Industry and Foreign Trade Tarek Kabil.
Kabil said that Egypt is considered to be the only country that has KIA car assembly license in the Middle East and Africa, referring that the employment rate in the new factory will reach 1000 workers.
The minister added that the current investment in the auto industry is about $3 billion, of which $1.6 billion is in the automotive industry and $1.4 billion is in the feeder industries.
There are about 86,000 workers that work in the auto industry and feeder industries, kabil noted.
The minister added that the car industry in Egypt has about 170 companies, including 19 companies that manufacture and assemble cars of all kinds, which include passenger cars, buses, micro and minibuses and transport vehicles, as well as more than 150 companies engaged in the manufacture of a number of components of cars.
Local Market volume reached 100,000 cars in 2017, 50% of them are locally produced, He said.
The minister added that the exports of the automotive sector and the feeder industries amounted to $700 million in 2017.
Chairman of the Egyptian International Company for Trading and Agencies, Khaled Naseer, said that the percentage of the local component in the assembled car is 45 percent and currently working on raising it to 48 percent.
Naseer pointed out that the number of factories supplied the car parts is 14 factories and employs about 4800 workers.
He stated that the annual production volume of the factory is 15,000 cars, adding that the factory will start manufacturing the sports car model "Kia Sorrento” and will start the manufacture of the second model in a year.