Chinese, Saudi companies open bus assembly plant in Egypt

CAIRO -- A new bus assembly plant co-built by Chinese and Saudi firms has started production in New Suez City, Egypt, with the first batch of transport buses expected to roll off the assembly line soon.

Speaking at a belated inauguration ceremony held in the city on Tuesday, Hamed Al Mutabagani, chairman of Saudi company ATM Misr, said the factory was designed with an annual production capacity of 500 buses.

The plant covers an area of 164,000 square meters and is equipped with advanced production lines, warehouses, and quality-control facilities, added Al Mutabagani, whose company co-built the factory with Chinese bus maker King Long.

ATM Misr invested 1 billion Egyptian pounds (about $3.3 million) in building the plant, while King Long provided technology and complete vehicle equipment.

The plant would supply Saudi-based bus dealer National Trade Company with 51 finished buses, 26 of which would use King Long car parts, according to a cooperation agreement.

About 60 percent of production used locally-produced components, in a bid to help localize the auto industry in Egypt, he said, adding Gulf countries serve as targetted markets.

It is hoped that the plant would make use of its location near three key ports to reach the African and European markets, he noted.