CAIRO — Two Egyptian-Chinese joint ventures plan initial investments of up to $500 million to expand electrical-equipment manufacturing and build substations in Egypt, according to a government official cited by Asharq Bloomberg, as the country seeks to reduce import dependence and strengthen its electricity grid for industrial growth and renewable-energy expansion.
XD-EGEMAC and CHINT-EGEMAC, partnerships between Egypt’s EGEMAC and China’s China XD and CHINT Group, respectively, intend to introduce production lines, expand local manufacturing and undertake turnkey substation projects. The Chinese partners hold 51% of each venture.
Established in 2009, XD-EGEMAC specialises in high- and extra-high-voltage equipment and has completed approximately 37 substations, including seven operating at 500 kilovolts. CHINT-EGEMAC, established in 2017, manufactures medium- and low-voltage distribution equipment, including switchgear, circuit breakers and transformer kiosks.
The expansion comes as Egypt accelerates investment in electricity infrastructure. In June, the European Union announced a financing package of up to €690 million to modernise Egypt’s transmission network and integrate additional renewable generation, highlighting growing demand for locally manufactured grid equipment.
The investment could strengthen domestic supply chains and reduce equipment procurement costs, although the economic benefits will depend on local component production, technology transfer and project execution.
Neither venture has disclosed a binding investment agreement, financing arrangements or an implementation timetable. It also remains unclear how much of the proposed $500 million would fund new manufacturing capacity rather than substation construction contracts, a distinction central to assessing its industrial impact.
Related Articles:
Egypt Expands Mediterranean Energy Hub as $24.9bn Import Bill Tests Resilience
Egypt Expands Gas Output and Cypriot Links to Reinforce its Energy Hub Status
Read Also:
