Japanese automaker Nissan may increase vehicle production at its Egyptian plant by as much as 5,000 units, or 23.8% year on year (y/y), during 2015, reports Middle East North Africa Financial Network. Citing a senior company official, the country's cabinet spokesperson Hossam El-Kawish reportedly revealed that Nissan is planning to produce about 26,000 units this year on a three-shift basis, up from 21,000 units during 2014. The development was reportedly discussed at a meeting between a senior Nissan official, Ibrahim Mahlab, the Egyptian prime minister, and the country's ministers of investment and of trade and industry. The company and officials are also said to be looking to attract automotive component suppliers to set up plants in Egypt to assist Nissan's efforts to increase local production.
Significance: Nissan operates a plant in 6th Of October City in the state of Cairo in Egypt through its local joint-venture partner Seoudi. The plant manufactures completely built-up (CBU) units of both the Sunny and the Sylphy (locally known as the Sentra), along with the Tiida and a compact pickup model in a completely knocked-down (CKD) form, according to IHS Automotive data. Egypt is one of Africa's largest vehicle-producing nations and, despite the political unrest of the past two years, still has significant potential. Egypt is aiming to move beyond the assembly of cars to begin full vehicle production. Nissan's plant in Egypt currently caters to local demand and supplies models to other smaller markets in very limited volumes, according to IHS data.
