Post on 18-Oct-2019
Growth Beyond Borders
Engineering Export Council of Egypt
Egypt Auto Parts Delegation
to Germany
12th – 16th November 2017
Growth Beyond Borders - 2 -
Egyptian Delegation
Company Name Representative Title Company’s Products
Dr. Ahmed Fekry A. Wahab Managing Director Brake Disks
Disc Brake Pads
Eng. Mohamed Ismail
Abdellatif
General Manager & CEO
Automotive Components
Brake Disks
Eng. Mahmoud Al GeuzeryManager
Car Seats - Bus Seats - Foam
Handles - Metal Parts
Eng. Raafet El Khanagry General Manager Brake Disks / Axels
Mr. Kirolos Teriak CEO Radiators / Heat Exchangers
Eng. Ehab Ibrahim Factory General ManagerBody Panel Parts
Stamping Parts, Steel Fuel Tank
Eng. Mohamed Abu GalalahHead of Automotive
Division
Sheet Metal Parts - Plastic Parts -
Mechanical Control Cables - Chasis
Modules and Seat Belts
Eng. Mohamed Awad ChairmanBumpers - Door Trims - Wheel Cover
and Logo
Eng. Hany FahmyLocal Content Procurement
and Supply Chain ManagerCars – Auto-Parts
Mr. Ahmed El Mofty Commercial Director Specialized industrial parks including
automotive & its feeding industries
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Organizers
Name Title Organization
Mrs. Maha Saleh Executive Director Engineering Export Council (EEC)
Mrs. Rana Atef Deputy Head of Department
Trade Fairs and Export Promotion
German-Arab Chamber for Industry &
Commerce
Egyptian Commercial Office in Berlin
Name Title Organization
Mr. Maher El Sherif Commercial Counselor – Head of
Egypt’s Commercial Office in Berlin
Egyptian Commercial Service (ECS)
Ms. Nissreen
Wahish
Commercial Assistant Egyptian Commercial Service (ECS)
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Index
Part 1 Engineering Export Council (EEC) Profile
Who we are & What we do
How we do it
Activities in 2017
Part 2 Engineering Industries Overview
Key Facts
Sectors and Exports
Part 3 Auto-Parts Industry Overview
Overview
Local Market
Products
Top Exports & Regions
International Clients
Part 4 Egypt’s Vision for Industry Investment Climate Reforms
Suez Canal Zone
Part 6 Cooperation Advantages
Part 5 Why Egypt
Part 1 EEC Profile
Growth Beyond Borders
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What we do
Helps in lobbying for the private sector by linking them to
policy making in order to facilitate doing business
internationally;
Promotes Egyptian Engineering products in the International
Market;
Stimulates investments and joint ventures for the purpose of
exporting.
Current Members: 350 Regular Exporters
Part 1: EEC Profile – Who we are & What we do
EEC is a PPP established by a Ministerial
Decree in 1997 as an “Advisory Body”
for H.E. Minister of Trade and Industry.
Who we are
Growth Beyond Borders - 7 -
How we do it – EEC Methodology for Development
3 Pillars for Export Development:
Market, Product & Company
Through support in the following areas:
Access to Market
Access to Skilled Labor (Vocational & Managerial)
Access to Information (Market Intelligence)
Access to Finance
Access to Technology Transfer
Access to Quality Infrastructure
Access to Legislation Formulation
Part 1: EEC Profile – How we do it
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Brief about EEC Activities in 2017
9 International Exhibitionso 5 countries (Germany, UAE, South Africa, Kenya, China)
o 60 companies
2 Trade Missionso Kenya (East Africa) & Ghana (West Africa)
o 45 companies
2 Buyers Missionso 100 prospect buyer
o Subsectors: automotive components and electrical industries
Market Studieso 79 studies
o HS Code (53) - Country/Region (22) - Sectoral (4)
Part 1: EEC Profile – Activities in 2017
Part 2 Engineering Industries Overview
Growth Beyond Borders
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Key facts
One of the top five industries that constitute 80% of theindustrial (non-petroleum) exports of Egypt.
Consists of 21 Sector, top exporting sectors: brown goods,automotive components, home appliances and electrical &electronics. Auto parts represent 21% of export value.
Among 4 priority sectors for the Ministry of Trade andIndustry’s Strategy of Industrial & Foreign TradeDevelopment 2020.
Part 2: Engineering Industries – Key facts
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Exports (Jan – Sept 2017)
Brown Goods 32%
Automotive Components
21 %
Cables20%
Home Appliances 11%
Electrical & Electronic 6%
Vehicle Industry4%
Blades 2%Remaining Sectors 4%
5 % increase in export value vis-à-vis same period in 2016
Part 2: Engineering Industries – Sectors & Exports
Remaining Sectors (good
export potential)
• Vehicle Industry
• Machinery and Equipment
• Metal Forming Products
• Pumps and Generators
• Agricultural Equipment
Part 3 Auto Parts Industry
Growth Beyond Borders
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Industry Overview
• Market Size:
No. of registered vehicles: 9.3 million (Accumulated 2016)
- 51% cars - 14% trucks
- 1% buses - 1% public transportation cars
- 33% Other Vehicles
Part 3: Auto Parts Industry - Overview
.
Cars Trucks Buses Public Transportations other
4.7
1.3
0.1 0.1
3.1
.
* Sources: CAPMAS - AMIC
In Million unit
In 2016 Only:
No. of brands : 37
No. of vehicle units:
198,271 51%
14%
1%1%
33%
Part 3: Auto Parts Industry – Local Market
Passenger Cars141,983
71%
Trucks35,005 18%
Buses21,283 11%
Vehicle Units in Egypt 2016
* Sources: CAPMAS - AMIC
Vehicle Units in Egypt 2016 (CKD & CBU)
CKD100,798
CBU97,473
* Sources: CAPMAS - AMIC
Passenger Cars Buses Trucks
59,319
13,238
28,241
82,664
8,045 6,764
CKD CBU
Vehicle Units in Egypt 2016 (CKD & CBU)
* Sources: CAPMAS - AMIC
South Korea46,150 33.5%
Japan40,685 29.5%
Europe19,547 14.2%
US18,754 13.6%
China12,631 9.2%
Other Asian Countries171
0.1%
Passenger Cars Market in Egypt by Brand Origin (2016)
* Sources: CAPMAS - AMIC
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Products Manufactured in Egypt
Part 3: Auto Parts Industry - Products
Brake Disc/ DrumBrake Pad for Passenger and Commercial Suspension and Axles Sheet Metal and Tube BendingMicro Channel Condensers / Custom made Heat Exchangers Radiators for Passenger and Commercial Exhaust SystemsBody Panel PartsPlastic PartsSteel Fuel TankControl Cables Car Seats Stamping / Chassis PartsPlastic Injections BumpersWheel Cover Batteries/Filters
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Main Export Regions (Jan – Sept 2017)
Part 3: Auto Parts Industry – Export Regions
EU72.80%
Arab Cs18.20%
Other European
2.8%
Africa1.50%
Asia1%
Remaining Countries
3.7%
* Source: GOEIC
We supply to
Part 3: Auto Parts Industry – International Clients
Part 4 Egypt’s Vision for Industry
Growth Beyond Borders
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Projects established after the implementation of the new lawshall qualify for
50% of Investment costs deduction of Projects in Sector A, includes certaingeographical areas (Suez Canal, Golden Triangle and others)
30% of Investment costs deduction of Projects in Sector B, includes therest of Egypt and certain activities such as the Automotive and itsfeeding industries, labor intensive, renewable energy, strategic nationalprojects and more.
The tax incentive is capped at a maximum of 80% of paid capital and over aperiod of seven years maximum.
Incentives offered by New Investment Law (No. 72 for
the Year 2017)
Part 4: Egypt’s Vision – Investment Climate Reforms
Growth Beyond Borders - 23 -
Makes Egypt a regional industrial and
trade hub.
A regional development strategy has
been set for the zone with three main
development nodes:
• Port Said (covering auto-parts)• Ismailia• Ain Sokhna
Suez Canal Economic Zone
Part 4: Egypt’s Vision – Suez Canal Zone
- Industrial Zone
- Industrial Parks
- East Port Said
Special Investor Incentives
Part 5 Why Egypt
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Part 5: Why Egypt – Competitive Advantage
- Relatively Low Cost (Blue Collar av € 2/hr
White Collar av € 1500/month)
- Tailored Trained Packages available
-Relatively Cheap Compared to Global Prices
€ 0.0485 per KWh (Sources: Eurostat and EgyptianMinistry of Electricity)
- Approximate Location
- Low shipping cost of empty cargo containers from Egypt (Competitive Freight Rates)
- Seaports: 8 / Cargo Airports: 4
Labor
Energy
Logistics
Part 5: Why Egypt – Labor
Part 5: Why Egypt – Energy0
.14
09
0.1
27
50
.11
56
0.1
09
50
.10
10
.09
33
0.0
91
10
.08
62
0.0
83
80
.08
35
0.0
82
90
.08
28
0.0
82
10
.07
86
0.0
77
20
.07
71
0.0
76
10
.07
53
0.0
73
60
.07
31
0.0
72
10
.06
96
0.0
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.06
77
0.0
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.06
43
0.0
64
20
.06
21
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90
.06
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0.0
60
70
.06
05
0.0
59
80
.05
96
0.0
58
70
.05
81
0.0
56
10
.04
85
Electricity Prices - Euro per KWh for year 2017
Egyp
t
Sources: Eurostat and Egyptian Ministry of Electricity
Part 5: Why Egypt – Logistics
“in days”
1. GAFTA
2. COMESA
4. Turkey
• FTAs facilitate market access
Expected demand in MENA is to reach 5 million units by
2025:
Import and export of components from Egypt/Europe
Export of vehicles from Egypt to Africa
3. EU
5. EFTA
6. EAC & SADC
Trade Agreements.. Opportunities yet a challenge to the local automotive Industry
Part 5: Why Egypt – Trade Agreements
Part 5: Why Egypt – Quality Infrastructure
Standards and Specs:
Adherence to UN ECE homologation Standards
Egypt has strong “National Quality Infrastructure”
http://www.egyptqualitydirectory.com/
In addition to,
Communication (No Language Barrier and Same Time Zone)
Investment Map available at www.invegypt.com
Part 6 Cooperation Advantages
Growth Beyond Borders
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What we look for?
Partnerships and Joint-Ventures between Egyptian andGerman companies in the Auto-Parts Industry to expandmarket share.
German Companies will enjoy the following:
Access to Local market
Access to untapped markets, making use of Egypt’s freetrade agreements
Access to incentives of New Investment Law 72
Access to incentives of Industrial parks
Explore Untapped Markets
Part 6: Cooperation Advantages
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Auto-Parts Global Demand (2016)
Part 6: Cooperation - Gateway to the World
560 BN Euro
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Egyptian Companies seek the following:
Knowledge & Technology Transfer from Germany which willcontribute to developing the Auto-Parts Industry in Egypt:
- Improving quality of Egyptian Auto-Parts products
- Helping Egyptian Companies meet international standards
- Further developing the skills of the Egyptian workforce
Expansion of their business which will also offer more jobs.
A much stronger capacity for exporting to internationalmarkets.
Suggested Egyptian-German
Cooperation in the Auto-Parts Sector
Part 6: Cooperation Advantages
Growth Beyond Borders - 35 -
Auto Parts in EEC E-Catalogue
Growth Beyond Borders
Thank You
eec@eec-eg.org
Zusammenkunft ist ein Anfang;
Zusammenhalt ist ein Fortschritt;
Zusammenarbeit ist der Erfolg.Henry Ford
Coming together is a beginning; Keeping together is progress; Working together is success.
www.eec-eg.org