Ezz Elsewedy launches $50M Proton plant in Egypt to drive exports

Ezz Elsewedy Automotive Factories (ESAF) has launched a $50 million Proton car assembly plant in Egypt’s 6th October Industrial Zone. The facility, part of a larger manufacturing complex, aims to transform the country into a regional export hub for vehicles.

“This isn’t just about producing cars; it’s about positioning Egypt as a powerhouse in the automotive sector,” said Hisham Ezz Elarab, Chairman of Ezz Elarab Group. With an annual capacity of 40,000 vehicles, the plant will assemble the Proton Saga for both local and export markets, targeting seven African countries.

The launch is timely, aligning with Egypt’s Automotive Industry Development Programme (AIDP) that seeks to localize manufacturing and boost exports. In November 2024, ESAF signed a framework agreement under the AIDP, marking a new era for the industry. Li Chunrong, CEO of Proton, emphasized Egypt’s strategic location, saying, “Egypt is our gateway to Africa and the Middle East. By 2025, we aim to produce 5,000 Proton Saga CKD units, setting the stage for export-led growth.”

A $50 million investment to shift gears

The new assembly plant spans 70,000 square meters and is the first of three facilities planned at the site. The second phase will include a spare parts plant within 18 months, followed by a paint shop. By expanding its production capacity to 80,000 vehicles annually, ESAF aims to attract both local and global brands for contract manufacturing and assembly.

Bassem Ashmawy, General Manager of Proton Egypt, described the launch as a “milestone” in the 20-year partnership between Proton and Ezz Elarab. “We’ve brought over 18,000 Proton vehicles to Egypt, but this plant takes our partnership to a new level,” Ashmawy said.

The plant’s strategic focus isn’t limited to traditional vehicles. Long-term plans include the assembly of electric vehicles (EVs) and components, tapping into the rising demand for cleaner mobility solutions. As Africa’s vehicle market is projected to grow at a CAGR of 6.6% through 2030, according to a report by Statista, Ezz Elsewedy’s move seems well-timed.

Export Dreams and Local Impact

Ezz Elsewedy’s ambitions extend beyond assembly lines. The company plans to leverage Egypt’s trade agreements with African nations to boost exports. By making Egypt a hub for Proton cars, ESAF is also expected to create thousands of jobs and spur local manufacturing of auto components.

The impact on Egypt’s economy could be significant. The automotive sector, which contributes about 3.5% to GDP, has room to grow. The new plant aligns with the government’s vision to increase this contribution to 5% by 2030. “This investment not only strengthens Egypt’s industrial base but also enhances our export capabilities,” said Amr Abu El Saud, CEO of ESAF.

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