KIA and EIT, announce the launch of the first assembly line in Egypt – Cairo December, 2018
05/12/2018 08:35 PM
Kia Sorento to be assembled in Egypt for the first time EIT, celebrated the assembly of the first “Kia Sorento” in Egypt. The new assembly line, which marks Kia’s first assembly line in the MENA region, is a significant milestone for the two companies, who have made significant head way in growing Kia’s market share in the country, since they entered the market in 2006.
During an event attended Minister of Trade and Industry, Eng. Amr Nassar, the Minister of Investment and International Cooperation, Dr. Sahar Nasr, and in the presence of the South Korean Ambassador, Yoon Yeocheol, Kia Motors and their exclusive distributor in Egypt; EIT, celebrated the assembly of the first “Kia Sorento” in Egypt. The new assembly line, which marks Kia’s first assembly line in the MENA region, is a significant milestone for the two companies, who have made significant head way in growing Kia’s market share in the country, since they entered the market in 2006. The event was also attended by the Chairman of KIA Motors Middle East and Africa, James Kim, and the Chairman of EIT (the exclusive distributor of Kia in Egypt), Eng. Khaled Nosseir, in addition to Chairman of EGA, Karim Sami Saad.
The new assembly line will see EIT invest a total of EGP 262 million into the factory within the first year, with plans for this investment to increase to LE 4.24 billion EGP, over a 5-year period. Talking about the importance of the launch of new assembly line, H.E. Dr. Sahar Nasr, the Minister of Investment, said, “The opening of factories such as this one highlights the important investment opportunities that Egypt has to offer, to both local and international investors. The new assembly line is a testament to the positive investment environment that we have to offer.” She went on to say, “The role of the private sector is integral in developing Egypt’s investment platform and initiatives such as this one, which allow Egypt to become a hub for KIA car assembly, for the first time, not just locally, but in fact regionally, will further encourage new foreign companies to come into the country and invest.”
Adding to H.E. Sahar Nasr’s comments, H.E. Eng. Amr Nassar, the Minister of Trade and Industry said, “We are here today to reaffirm the government’s support of the automotive industry in Egypt. We understand that this sector is an essential pillar of economic reform and sustainable development.” “Assembling new cars locally reflects the increased awareness that local companies have, about Egypt’s industrial potential. Assembly lines like this one, confirm, that the automotive sector will play a big role in enhancing the Egyptian economy, attracting new investments and reviving the industrial sector," he went on to add.
Talking about their decision to invest in the new assembly line, Khaled Nosseir, Chairman of EIT, the exclusive distributor of KIA Motors in Egypt, said, "We are proud to be the first entity to obtain the KIA license for car assembly not only in Egypt, but in fact across the Middle East and Africa. This demonstrates KIA International’s confidence in the Egyptian market and highlights the promising investment opportunities we have to offer. It is also of course an indicator of the strong partnership between Kia and EIT; a partnership that we will continue to build on." He went on to add that the decision to assemble the new car, comes in line with government efforts to support and develop the automotive sector, as well as reflecting the company’s aim to focuses on consumers looking for cars with international specs at competitive prices.
Nosseir further praised the efforts of the Egyptian government represented in the Ministry of Trade and Industry and Eng. Amr Nassar, as well as the Industrial Development Authority headed by Eng. Ahmed Abdel Razek.
Reaffirming their strong partnership with EIT, James Kim, the Chairman of KIA Motors Middle East and Africa, said, “KIA’s exclusive agent in Egypt, EIT is well-aware of the changing market and fully understands the needs of Egyptian consumers which is one of the main reasons we decided to work with EIT to introduce the assembly line in the MENA region.”
For his part, the South Korean Ambassador to Egypt, Yoon Yu-shun said, "Egypt is one of our most strategic trade and economic allies in the Middle East and Africa. As the oldest automotive company in South Korea, the entrance of KIA’s assembly line in Egypt highlights the depth of trade and economic ties between the two countries."
The assembly line will begin with one model, the multi-purpose "Kia Sorrento" sports car with an ambitious plan to start the manufacture of a second model within a year; bringing annual production up to 15 thousand cars, with further studies to be undertaken to look into the possibility of manufacturing a third model within two years.
EIT works in accordance with the strategy of the government aimed at supporting the development of industrial projects across a range of sectors. As part of this plan, the company will work to integrate local components into the newly assembled cars; with 45% of assembly to take place in Egypt in the initial phase and plans to grow this to 48%, in the future.