Egypt’s Prime Minister Highlights Industrial Sector as Key to Sustainable Economic Growth

Visit of the Prime Minister to the Alstom Industrial Complex.

Dr. Mostafa Madbouly, Egypt’s Prime Minister, along with accompanying officials, visited the Alstom industrial complex in New Borg El Arab City. This visit is part of the government’s efforts to enhance and localize railway manufacturing in Egypt.

During his visit, Madbouly emphasized that the industrial sector is a fundamental pillar for achieving sustainable economic growth and enhancing national competitiveness. He noted the government’s ongoing implementation of programs aimed at supporting domestic industries by increasing production, deepening local manufacturing, and expanding export markets. The government is committed to providing various forms of support and facilitation for investors and manufacturers to attract more investments and create sustainable job opportunities for youth.

Eng. Kamel El-Wazir, Minister of Transport, highlighted the significance of this massive project, which aims to meet local market demands while also paving the way for exports to Middle Eastern and African countries. This initiative aligns with the Ministry of Transport’s strategy to localize various heavy industries in Egypt, including railways and metro systems, as directed by President Abdel Fattah El-Sisi. The goal is to conserve foreign currency, support the national economy, transfer expertise to Egyptian labor, satisfy local market needs, and then expand into international markets.

The minister also pointed out that the localization plan for railway manufacturing includes producing switch keys at the “Voest Alpine Egypt” factory in Abbassia, manufacturing internal components for railway trains at “Kollway Egypt” in Kom Abu Rady workshops, along with rail production at “Suez Steel” factory. Additionally, it involves establishing concrete sleeper production through six Egyptian national companies and fabricating passenger/freight cars at “Semaf” factory. The industrial complex for Alstom in Borg El Arab will also produce train brake pads at “Trans Brake” factory in Alexandria and manufacture rolling stock and its components through the National Egyptian Railway Industries Company (NIRK).

Dr. Madbouly received a detailed briefing from Eng. Rami Salah El-Din, Managing Director of Alstom Egypt, regarding the current status of ongoing works and the project timeline. He explained that the project includes two main factories: one dedicated to producing electrical systems over an area of 13 feddans (approximately 5.5 hectares), which will create around 700 direct jobs; this factory has achieved 25% completion with an expected completion date set for October 2026.

The second factory will specialize in manufacturing all types of rolling stock on a site covering 37 feddans (about 15.5 hectares) and will include production for metro systems, trams, light rail transit (LRT), monorails, high-speed trains, among others. This facility will provide an additional 250 direct job opportunities.

At the conclusion of his tour of the factory, Prime Minister Madbouly expressed his eagerness to expedite execution rates with a view towards commencing operations as soon as possible while increasing production levels to meet domestic needs and enhance export opportunities.