Engineering Export Council of Egypt - komora.cz · Eng. Mohamed Ismail Abdellatif General Manager &...

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


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)


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



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


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


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



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


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



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


Vehicle Units in Egypt 2016 (CKD & CBU)

CKD100,798

CBU97,473


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)


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)



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


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



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


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



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

69

60

.06

77

0.0

66

50

.06

43

0.0

64

20

.06

21

0.0

61

90

.06

15

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

http://www.egyptqualitydirectory.com/

http://www.invegypt.com/

Part 6 Cooperation Advantages



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


Auto-Parts Global Demand (2016)

Part 6: Cooperation - Gateway to the World

560 BN Euro


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


Auto Parts in EEC E-Catalogue


Thank You

[email protected]

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

Engineering Export Council of Egypt - komora.cz · Eng. Mohamed Ismail Abdellatif General Manager &...

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