Egypt opens industrial complex and plans US$27m to US$43m railway factory to boost manufacturing

Egypt has inaugurated a major industrial complex in New Borg El-Arab City while unveiling plans to invest between US$27 million and US$43 million in a new railway wagon factory, as the country intensifies efforts to strengthen its industrial base and expand export capacity.

The first phase of the El-Gharably Industrial Complex was officially launched under the supervision of Prime Minister Mostafa Madbouly, who also inspected a series of related industrial projects across Alexandria’s growing manufacturing hub.

The newly opened facility spans approximately 315,000 square meters and is designed to enhance Egypt’s engineering and industrial capabilities. Authorities say the complex already employs about 3,000 workers, with projections to increase its workforce to 5,000 as operations expand in subsequent phases.

The complex includes a wide range of industrial operations, such as a steel structures manufacturing plant, extensive maintenance and engine overhaul workshops, and a dedicated facility producing industrial and medical gases. Combined, these operations give the site an annual production capacity exceeding 100,000 tonnes, positioning it as one of Egypt’s most significant industrial assets.

“Industry remains a cornerstone of sustainable economic growth and a key driver of exports, employment, and competitiveness,” Prime Minister Madbouly said during the commissioning ceremony, highlighting the government’s continued focus on manufacturing as a key pillar of economic policy.

The El-Gharably complex is also expected to support several national development projects, including infrastructure expansion initiatives such as the West Arc Axis and urban development programmes like Abu Qir New City. Officials say its capabilities will contribute directly to ongoing efforts to modernise Egypt’s infrastructure and industrial supply chains.

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Egypt opens industrial complex and plans $27 million to $43 million railway factory to boost manufacturing

Alongside the complex, the prime minister also inspected the newly established Jade Textile ready-made garments factory, further underscoring Egypt’s push to strengthen its manufacturing ecosystem across multiple sectors, including textiles and heavy industry.

The most significant development, however, lies in the planned second phase of the industrial complex, which includes a joint venture with Polish firm Tabor to establish a railway wagon manufacturing facility. The proposed factory, to be known as GTRM, is expected to produce up to 300 railway wagons annually.

With an estimated investment ranging from $27 million to $43 million, the railway project is projected to create around 500 additional jobs while boosting Egypt’s capacity in rail transport manufacturing. Officials say approximately 40% of the factory’s output will be exported, contributing to foreign exchange earnings and strengthening Egypt’s position in regional and global supply chains.

The expansion into railway manufacturing aligns with broader efforts by Egypt to localise industrial production and reduce reliance on imports. It also reflects a growing trend across Africa, where governments are prioritising industrialisation as a pathway to economic diversification and job creation.

The complex is led by industrialist Moataz El-Gharably and managed by a team of about 1,500 professionals. Equipped with advanced manufacturing technologies, the facility adheres to international standards for quality, safety, and environmental management, enabling it to compete in global markets.

Operationally, the complex has significant capacity across its engineering divisions, including the ability to conduct 20 engine overhauls, 10 full renewals, and 40 general repairs each month. Its industrial and medical gas plant also produces up to 550 cylinders daily, supporting both industrial processes and healthcare needs.

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Analysts say the project represents a strategic move by Egypt to consolidate its role as a regional manufacturing hub, particularly as global supply chains continue to shift toward emerging markets. By combining heavy industry, textiles, and transport manufacturing within a single ecosystem, the country aims to capture more value across production chains.

The inauguration of the El-Gharably Industrial Complex and the planned railway factory signal a broader ambition to transform Egypt into a key player in industrial production across Africa and beyond, with a focus on exports, job creation, and technological advancement.

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