GB Auto will build a LE 75 million ($13 million) automotive warehousing and logistics facility near Cairo it hopes will generate 60 million a year in savings and fees, it said on Tuesday.
Egypt’s biggest listed vehicle assembler will build the facility in Sadat City, 90 km northwest of Cairo, on 700,000 square meters it won this week in a government tender, it said on Tuesday.
The project will cost LE 75 million, including purchase of the land, which the company will pay over two to three years. It expects the facility to come on line in 12-18 months.
"This bonded facility will allow us to receive our imports of containers as well as completely built-up vehicles as soon as they arrive in Egypt’s ports," chief executive Raouf Ghabbour said.
GB Auto manufactures, assembles, imports and distributes vehicles for Bajaj, Hyundai, Mazda Motor Corp, Mitsubishi and Volvo.
"At our current rate of import, the facility will save GB Auto some LE 30 million per year," Ghabbour said.
GB Auto said it will offer use of the facility to other companies, generating an additional LE 30 million per year. It expects to begin construction in three months.
