Alstom plans Egypt factory with up to €25M investment to boost exports

Updated 4/13/2026 5:32:00 PM

Arab Finance: Egypt is in talks with French multinational rail transport systems manufacturer Alstom to localize railway manufacturing and establish a factory for train components, as part of efforts to position the country as a regional export hub, the Ministry of Investment and Foreign Trade stated.

The talks took place during a meeting between Minister of Investment and Foreign Trade Mohamed Farid Saleh and Martin Fugur, president of Alstom’s Africa, Middle East, and Central Asia (AMECA) region, along with Rami Salah El-Din, managing director of Alstom Egypt, to discuss the company’s expansion plans and ways to increase local manufacturing in the transportation sector.

The discussions included plans to establish Alstom’s first factory in Egypt to produce electrical components for trains. The facility, with investments ranging between €20 million and €25 million, is expected to create around 400 jobs in its initial phase and will focus on manufacturing and assembling components such as rolling stock systems and signaling equipment, with nearly 100% of production directed toward export markets.

Construction of the factory is currently around 35% complete, with operations targeted to begin in August.

Farid said the government is prioritizing the localization of advanced industries and technology transfer, particularly in high value-added sectors such as transportation. He noted that Egypt’s strategic location, skilled workforce, and developed infrastructure position it to become a regional hub for railway component manufacturing and smart transport systems.

He added that the ministry is working to streamline licensing processes through mechanisms such as the Golden License and investment zones, while coordinating with the Ministry of Industry to attract feeder industries and strengthen local supply chains.

The meeting also reviewed Alstom’s operations in Egypt, which span more than 40 years, including its involvement in major transport projects such as metro and monorail systems, as well as signaling and control technologies. The company is also preparing to sign four new contracts in this sector.

Farid highlighted the importance of increasing the local component ratio in industrial projects and building a competitive ecosystem of local suppliers to support sustainable investment and enhance the competitiveness of Egyptian exports.

Vaujour said Alstom views Egypt as a strategic hub for its operations across Africa and the Middle East, noting that the company is expanding its industrial footprint in the country to align with growing demand in the global railway sector. He added that the investment reflects a broader strategy to locate manufacturing closer to target markets.

For his part, Salah El-Din said that the company aims to gradually increase the local component ratio to around 30%, starting with locally available inputs while working to qualify suppliers to meet international standards.

He added that Alstom is implementing training programs to develop Egyptian talent through local initiatives and international exposure, ensuring the transfer and localization of technical expertise.

The meeting concluded with an agreement on next steps, including the submission of detailed studies on expected export volumes, job creation, and economic returns, alongside plans to develop supply chains and supporting industries, as the government seeks to reinforce Egypt’s position as a regional hub for transport manufacturing and exports.