More Chinese automotive assembly here

Al Amal Group plans to invest USD 20 mn in the local assembly of three new models of Chinese automaker Dongfeng’s Forthing brand, Chairman of Al Amal Group Amr Soliman told the domestic press. Al Amal will launch a gasoline-powered model in mid-January, a hybrid version by mid-2026, and a fully-electric model by the end of the year. Initial production capacity for the Forthing model is estimated at 5k units in 2026, targeting the domestic market primarily with the option to export “once conditions stabilize,” Soliman said.

In line with our automotive localization efforts: The Madbouly government has made it a priority to localize the assembly of vehicles as the first step in its plan to truly localize the automotive sector. It updated the Automotive Industry Development Program last year with the goal of attracting more investments and deepening the localization of the sector.

Dive deeper: We think hybrid vehicles will be one of the sweet spots for the industry as domestic charging infrastructure is built out.

Elmarakby Steel to invest EGP 1 bn in vertical integration play

Steel manufacturer Elmarakby Steel is set to sign contracts this month for a new EGP 1 bn plant in New October, Chairman Hassan Elmarakby tells EnterpriseAM. The facility will specialize in producing cold-drawn wire rods — a key production input the company previously sourced through imports. Construction is slated to begin immediately after signing, with the new lines expected to come online by the end of 2026.

Why it matters: This is a strategic pivot toward vertical integration and import substitution. By manufacturing its own inputs, Elmarakby is insulating its margins from FX volatility and supply chain shocks. The move could give the firm a significant price advantage in both national project tenders and export markets.

The big picture: The investment is part of Elmarakby’s broader roadmap to hit EGP 6.5 bn in total investments by 2030.

Eroglu Moda to set up garment factory in Qantara

Turkey’s Eroglu Moda signed a USD 5.6 mn contract yesterday to establish a new garment factory in the SCZone’s Qantara West Industrial Zone, marking the latest addition to the rapidly densifying industrial zone, according to a statement. The self-funded project aims to produce 1 mn pieces of denim and apparel annually, with 95% of production destined for export, and is expected to create 700 direct jobs upon full operation.

In context: A growing number of Turkish apparelmakers are shifting manufacturing to Egypt to hedge against rising domestic costs and leverage Egypt’s trade access to the US and European Union.

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