SCZONE, TSFE pen agreement with Volkswagen to study producing cars in Egypt

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Cairo – The General Authority for the Suez Canal Economic Zone (SCZONE), the Sovereign Fund of Egypt (TSFE), and East Port Said Development Company, have signed a feasibility study agreement with Volkswagen Africa for automobile manufacturing in the East Port Said region.

The new agreement aims to expand cooperation to include additional developments in the East Port Said Automotive Zone, focusing on establishing a car parts assembly line, according to a cabinet statement.

Walid Gamal El-Din, Chairman of the General Authority of the SCZONE, stated that the agreement aligns with the state's efforts to deepen and localise the automotive industry in Egypt, reinforcing the government's commitment to strengthening this sector.

He noted that the agreement builds on a prior feasibility study agreement with Volkswagen, signed on 12 November 2023, to prepare a joint study for a car painting facility in the East Port Said Industrial Zone.

Ayman Soliman, CEO of the TSFE, announced that the agreement mandates the use of highly qualified consultants to conduct a comprehensive feasibility study, covering the construction of relevant facilities, a car body shop, buildings, and the assembly line.