The news comes four years after the German luxury car manufacturer was forced to shut down its plants in Egypt.
Trade and Industry Minister, Amr Nassar, has signed a Memorandum of Understanding (MoU) with Mercedes-Benz during a visit to Stuttgart, Germany, which has set in motion the resumption of the assembly of Mercedes=made passenger cars in Egypt, after a four year hiatus. The MoU also mentioned plans of Mercedes Benz setting up a plant in the Suez Canal Economic Zone.
Initially, the luxury car maker shutdown its assembly line mid 2015 amidst the shortage of foreign exchange, and as fully assembled imports or completely built up cars, became more cost-competitive in Egypt.
It's believed that the announcement will be of benefit to both parties; more jobs will be created in Egypt, while Mercedes sees its return to Egypt as a strategic regional advantage. Speaking to City News 1130, executive for production and supply chains, Jörg Burzer, said that the local assembly will “structure our production network even more flexibly and efficiently and respond even better to the needs of our customers.”
In January, when rumours first emerged, Mercedes board member, Markus Schaefer, suggested that that the company’s presence will benefit Egypt in terms of its expertise in modern mobility, electric cars and autonomous driving, which he says can be of great use with infrastructure projects in the New Administrative Capital.
Another MoU was signed by Nassar, meanwhile, with German companies, Bosch and Siemens Hausgerä,t who according to a cabinet statement will open a home appliance factory in Egypt's 10th of Ramadan Industrial city, allocating over 10 acres in the industrial city for the plant.
Main image courtesy of Mercedes-Benz.