Automaker GAC planning a USD 300 mn manufacturing plant in Egypt

Good afternoon, wonderful people. A lull in weather brings with it a slow news cycle, but we don’t expect either one to last too long. Our focus today is on how Apple turned lemonade into lemons… And how a pivot may be able to squeeze some juice back out.

THE BIG STORY TODAY-

GAC Motor could be the latest Chinese automaker to set up production facilities here: GAC Motor plans to invest USD 300 mn to establish a car manufacturing plant in the country to serve both local and export markets, according to a cabinet statement. The plan was announced by General Manager Feng Xingya in a meeting between the General Authority for Freezones and Investment head Hossam Heiba and a number of Chinese players focused on expanding Chinese investments in Egypt.

ICYMI- We heard back in September that Auto Jameel — GAC Motor’s local agent — would produce the first locally manufactured GAC models on the market, with plans to assemble 2-3 models and manufacture 10-15k vehicles per year. The news came on the heels of Prime Minister Moustafa Madbouly’s offer to give GAC Motor special incentives and a golden license to expand production to Egypt.

Oppo also has big plans for Egypt: Smartphone manufacturer Oppo said it plans to make Egypt its second largest global production hub after China. The company in October said it aims to increase local production from 70k phones per month to 500k.

And ZTE reiterated its commitment to expanding here to capitalize on growing demand for telecom infrastructure. The telecommunications equipment manufacturer inked an MoU in September to locally manufacture a number of products, including fixed network terminals and optical network distribution products.

THE BIG STORY ABROAD-

EU and UK reach “tentative” post-Brexit agreement ahead of summit: The European Union and Britain have agreed to reset post-Brexit relations ahead of today’s EU-UK summit according to EU officials who spoke to Reuters. The agreement focuses on eliminating trade barriers between the two sides and strengthening defense collaboration to bolster the UK’s economy and enhance its security across the continent.

The new accord is “paving the way for British firms to participate in large EU defence contracts,” Reuters reported. The negotiations also addressed fishing and agricultural trade, with the UK agreeing to “keep its fishing grounds open to the EU boats” for an additional 12 years, according to the Financial Times. (Reuters | Financial Times | CNBC | BBC)

What’s next: A written procedure is currently underway and in the process of being approved by all 27 EU member states to formalize the agreement. An EU diplomat told Reuters that this “shouldn’t cause a problem” as “all member states seem happy with what’s put on the table as the summit is about to start.” Additional details of the agreement will be revealed during the summit.

☀️ TOMORROW’S WEATHER- The capital will be seeing the mildest weather of the week tomorrow, with the mercury peaking at a breezy 31°C throughout the day with a low of 18°C at night, according to our favorite weather app.