Cairo, June 28, 2004 - Nissan Motor Co. Ltd., today announced details of its expanding business operations in Egypt. These include the buyout of the assets of the existing manufacturing operation, located at 6th October Industrial City near Cairo.
Nissan will be investing $60 million during 2004 and 2005. This investment will support the complete refurbishment, modernization and expansion of the existing manufacturing plant, as well as enhancing sales, marketing and distribution operations.
By 2010 our total investment will have increased to over $100 million.
In addition to benefiting the local economy, Nissan's investment is a further step towards establishing Egypt as an automotive industrial base for the Middle East and North African regions.
Highlights of the business plan include:
- Buy-out and investment into the manufacturing facility in 6th October Industrial City
- Introduction of new Nissan models into the Egyptian market- both locally built and imported
- Using Egypt as a competitive export base for neighboring markets - subject to local trade and economic conditions
"Nissan is one of the world's truly global automakers, and this investment proves our commitment to Egypt and to the Middle East as well as a further expansion in other key global markets, said Carlos Ghosn, President and CEO, Nissan Motor Co. Ltd. Egypt offers Nissan a competitive geographic base to help expand both its local business as well as exports to North African and Mid-Eastern markets."
Nissan has operated in Egypt since December 1997 through a local privately owned company. It has assembled the Pickup model through a CKD operation at the 6th October industrial plant. Included under the terms of the new business plan and investment, Nissan will buyout the assets of the manufacturing operation.
In support of future growth in Egypt, Nissan will be expanding its current range of vehicles to cover passenger, SUV and commercial vehicle segments. In the summer of 2005, Nissan will commence local assembly of its first passenger vehicle in Egypt, the Sunny sedan. Following the Sunny we will then launch a locally assembled SUV. This will be the X‑Trail, one of our biggest hits around the world.
Nissan currently sells the locally assembled Pickup and imports the Sunny sedan in the Egyptian market. The Nissan plant in Egypt currently stands on 104 thousand square meters and employs 294 employees.
"We would like to acknowledge the contribution made by Dr.Seoudi and his team in supporting the Nissan business in Egypt, said Toshiyuki Shiga, Senior Vice President, Global Overseas Markets, Nissan Motor Co. Ltd. Our future plans for Egypt now require a new level of investment and commitment from Nissan which will be better supported through our direct management of local manufacturing operations."
Nissan's investment in Egypt is just one of many new global expansion projects supporting the company's future growth plans outside of its traditional significant presence in Japan, North America and Europe.
In 2005, Nissan will launch its next three-year business plan called "NISSAN Value-up" . Designed to maintain Nissans position as one of the world's most profitable automakers, NISSAN Value-Up will include expansion into new and emerging markets such as Egypt.
###