Wednesday, May 6, 2026

ABB Egypt Raises Local Component Ratio to 78% Through $300m Investment Drive

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CAIRO8 has increased the local component ratio in its electrical manufacturing operations to 78%, supported by investments exceeding $300 million over the past decade, according to company statements reported by Egyptian business media.

Engineer Ahmed Hammad, head of ABB Egypt’s electrical industries operations, said the company currently operates 13 production lines and industrial facilities in Egypt, enabling greater reliance on locally sourced components and expanded domestic manufacturing capabilities.

The company’s annual production volume in Egypt has reached approximately EGP 14 billion, while exports now account for around 24% of total production. ABB Egypt exports locally manufactured products to more than 50 countries, including markets in Germany and Latin America.

According to company officials, the increase in local content forms part of broader efforts to support industrial localisation and reduce dependence on imported components within Egypt’s electrical manufacturing sector. The investments have also focused on upgrading production technologies and strengthening supply-chain integration.

The announcement comes as Egypt continues to encourage local manufacturing across strategic industries, particularly sectors linked to energy, infrastructure, and industrial equipment. Policymakers have increasingly emphasised localisation as a means of supporting exports, reducing foreign currency pressures, and strengthening industrial competitiveness.

As The Middle East Observer notes, ABB Egypt’s expansion reflects a wider industrial trend in which multinational manufacturers are increasing local sourcing and production capacity within Egypt, reinforcing the country’s ambition to position itself as a regional manufacturing and export hub for electrical and engineering industries.

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