The first phase of Nissan's new automobile plant in Egypt is to be commissioned by the summer of 2005, according to a spokesperson for the company.
The Japanese automaker is putting in an estimated $100 million (Dh367 million) towards the venture, which will cover "purchase of existing assets as well as set-up, refurbishment, development, expansion of the plant's production capacity up to 2010 and necessary working capital".
The plant was earlier owned by Modern Motors, Nissan's agent in Egypt. It is now owned by Nissan Egypt, which in turn is fully owned by Nissan Motor Co Ltd.
In late June Nissan announced the buyout of the assets of the existing manufacturing operation, located at 6th October Industrial City near Cairo. At that time, the automaker had confirmed it would be investing $60 million during 2004 and 2005.
Nissan operated in Egypt since December 1997 through the local privately owned company. It assembled the pick up model at the plant.
Now, the line-up will be expanded to include the hugely popular mid market Sunny and the X-Trail sports-utility. "The vehicles assembled in Egypt will be for the Egyptian market as well as for those neighbouring countries that have an advantageous tariff agreement for car imports from Egypt," the spokesperson added.
"We see a real potential for export from Egypt to African markets. Egypt is a member of the Organisation of African Union (OAU).
"Egypt had the right mix of industrial base, skilled work force, export and potentials and of course the presence of an existing automotive assembly plant that Nissan could make use of. "This is a Nissan project and as such is majority owned by Nissan Motor Co."
Details regarding the capacity of the facility will be revealed only by the time of the launch of operations next year. But there is "potential" for further capacity upgrades at a later date if found necessary.
"We aim to use as much as possible from local suppliers for the parts used in the assembly plant. We have a list of quality suppliers and these are constantly under review," the spokesperson said.
"However, we stick to our international quality criteria."
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