The meeting reviews Alstom plans to establish its first factory in Egypt for manufacturing electrical railway components.
Dr. Mohamed Farid:
- Localizing advanced industries and transferring technology are top State priorities.
- Egypt is well positioned to become a regional hub for the manufacture of railway components.
- Integration with local supply chains enhances the sustainability of investments.
Martin Vaujour:
- Alstom is expanding its investments in Egypt and aims to export nearly 100% of its output.
- The Egyptian market is a strategic hub for the company’s operations across Africa and the Middle East.
Dr. Mohamed Farid Saleh, Minister of Investment and Foreign Trade (MIFT Minister), met with Mr. Martin Vaujour, President of Africa, Middle East, and Central Asia (AMECA) Region at Alstom, and Mr. Rami Salah El-Din, Managing Director of Alstom Egypt, to explore means for strengthening cooperation and supporting the Alstom’s expansion plans in the Egyptian market. The meeting comes within the framework of the State’s strategy to localize strategic industries and boost exports.
The discussions included a detailed review of Alstom’s operations in Egypt, which span more than 40 years, as well as its projects in the transport sector—particularly metro and monorail developments—alongside signaling and control systems that are critical to operational safety. The parties also noted the imminent signing of four new contracts in this field.
Dr. Farid emphasized that the Egyptian government places the localization of industry and technology transfer at the forefront of its priorities, particularly in high value-added sectors such as transport. He noted that the government is working to create an attractive investment environment through infrastructure development, streamlined procedures, and a range of investor incentives.
MIFT Minister highlighted Egypt’s strong competitive advantages—including its strategic geographic location, availability of skilled labor, and modern infrastructure—which position it to become a regional hub for the manufacturing of railway components and smart transport systems. He stressed the importance of increasing local component in industrial projects.
He added that MIFT is providing multiple pathways for obtaining licenses—whether through the golden license or investment zones—ensuring rapid implementation and operational efficiency, while selecting the most suitable framework for each project.
He also underscored the importance of building robust local supply chains, affirming the government’s readiness to coordinate with the Ministry of Trade and Industry (MTI) and relevant stakeholders to attract supplementary industries supporting transport manufacturing. This includes identifying potential suppliers and offering the necessary incentives to ensure investment sustainability and enhance the competitiveness of Egyptian products.
The meeting further reviewed Alstom’s contribution to major national projects, most notably the Monorail project, which is currently undergoing trial operations and is expected to be operational in the coming weeks. The company is also undertaking advanced engineering activities within Egypt, contributing to knowledge transfer and local capacity building.
Discussions also covered the Alstom’s plans to establish its first factory in Egypt to manufacture electrical components for trains. The project has reached approximately 35% completion, with inauguration targeted for August.
On his part, Mr. Martin Vaujour stated that Alstom is implementing an industrial investment in Egypt between €20 million and €25 million worth, expected to create around 400 jobs in its initial phase. He explained that the factory will produce and assemble electrical components, including rolling stock systems and signaling equipment, with nearly 100% of production directed toward export markets—supporting foreign currency inflows and the Egyptian economy.
He added that this investment builds on the company’s successful experience in Morocco and reflects a strategic shift toward locating manufacturing capabilities closer to target markets, particularly in light of the significant global growth in the railway sector, especially across Africa and the Middle East, where substantial expansion opportunities remain.
Mr. Vaujour also emphasized the company’s commitment to strengthening its operational and industrial footprint in Egypt, supporting the localization of railway component manufacturing and enhancing production efficiency.
Meanwhile, Mr. Rami Salah El-Din, Managing Director of Alstom Egypt, noted that the company aims to gradually increase the local component to approximately 30%, despite challenges related to supplier availability and technology. He explained that the company will initially rely on components available in the local market while working to qualify suppliers to meet international standards.
He added that Alstom is implementing comprehensive training programs to develop Egyptian talent, including both domestic training and overseas assignments to acquire expertise, which is then transferred and localized within Egypt to ensure sustainable knowledge transfer.
The meeting concluded with agreement on a number of executive steps, including the company’s preparation of detailed studies on projected export volumes, employment opportunities, and economic returns, as well as a comprehensive plan for required supply chains and supplementary industries. The government, in turn, will support efforts to attract these investments and provide the necessary facilitation, reinforcing Egypt’s position as a regional hub for transport manufacturing and export.
