Mercedes-Benz has announced that it plans to start a new passenger vehicle assembly plant in Egypt.

“Egypt is an attractive and competitive location for production and supporting logistics. With the planned local assembly we are confident to be able to expand our market position,” said Markus Schäfer, member of the divisional board of Mercedes-Benz Cars for production and supply chain.

“Furthermore, with our broad-based product portfolio, our electric initiative as well as our expertise in respect of modern mobility concepts, we are ready to support the Egyptian authorities in related projects,” he added.

The Stuttgart-based firm confirmed the proposed passenger car assembly plant would be “built by a local business partner”, explaining the planned localisation effort was being developed “in close collaboration with the Egyptian government”. It's not yet clear which models would be produced at the facility.

“We welcome the decision of Mercedes-Benz to resume manufacturing and assembly of cars in Egypt, a step that reflects the improvement of the investment environment and the performance of business in Egypt, in the light of the implementation of the comprehensive economic reform program as well as the openness of Egypt to cooperate with the German company within the framework of its policies to develop the automotive industry in its various categories,” said Abdel Fattah El-Sisi, president of the Arab Republic of Egypt.

The Mercedes-Benz retail network in the country currently comprises authorised sales and after-sales enterprises in Cairo, Giza, Alexandria and Hurghada.