Yazaki Will Spend US$33.3 Million To Build An Auto Parts Factory in Egypt.

Japanese auto parts supplier Yazaki has signed an agreement with the governor of Fayoum state to allocate land for a new 30 million euro ($33.27 million) factory built by the company's local subsidiary, according to a statement from Egypt's cabinet on Monday.

The project is located in the Fayoum Free Investment Zone and is expected to create 3,500 direct and indirect jobs.

Ahmed Bedewy, Vice President of Yazaki Egypt, said that the new factory covers an area of 70,000 square meters and will include a free zone, an administrative building and parking spaces.

Bedewy added that all products from the new factory will be exported, which will contribute to Yazaki Egypt's goal of increasing annual exports from the Egyptian factory to 100 million euros.

The executive revealed that construction of the project is scheduled to start in October 2023 and end in December 2024.

Headquartered in Japan, Yazaki operates 140 factories in 45 countries around the world, producing wiring harnesses, automotive parts and electrical systems. The company has annual sales of €12.5 billion, according to Bedewy.

Yazaki Egypt received a gold license for the project from the Egyptian government in December 2022.

A golden license allows investors to purchase or lease land and operate a business on it without further government approval.

Egypt's cabinet on July 19 issued gold licenses to five projects with a total investment of 10.2 billion Egyptian pounds ($329.34 million).