German automaker Mercedes-Benz is currently in the process of expanding its global operations, which will include a $1 billion battery factory in Alabama. While the massive investment in the United States is good news, it is far from the only expansion the company has planned. Mercedes is looking to open yet another plant and Egypt is the main candidate for the build site.
According to Mercedes, the factory would be built in cooperation with a local partner in Egypt after Member of the Divisional Board, Markus Schafer, met with the President of the Arab Republic of Egypt, Abdel Fattah El-Sisi.
"Egypt is an attractive and competitive location for production and supporting logistics. With the planned local assembly, we are confident to be able to expand our market position", said Schaffer. Since the discussions have yet to be finalized, we have no details on which Mercedes models would be built at the Egypt plant or which markets the plant would export to.
The local government was quick to support Mercedes' efforts to build a factory. "We welcome the decision of Mercedes-Benz to resume manufacturing and assembly of cars in Egypt, a step that reflects the improvement of the investment environment and the performance of business in Egypt", said President El-Sisi.
Mercedes has been present in the Egyptian market since 1999, where it employs 1,000 people both directly and indirectly through import and sales organizations as well as a spare parts warehouse. If the deal does go through, Mercedes may offer up its expertise in mobility and electric cars to build smart cities in Egypt.
"With our broad-based product portfolio, our electric initiative as well as our expertise in respect of modern mobility concepts, we are ready to support the Egyptian authorities in related projects", Schafer said. If any new details emerge regarding the status of these discussions, we will be sure to update you.