Hyundai Rotem, NERIC to manufacture railcars in Egypt
South Korea’s Hyundai Rotem will partner with the National Egyptian Railway Industries Company (NERIC) to produce railcars in Egypt after the two signed an MoU on Wednesday, the Planning Ministry said in a statement (pdf). The company will set up plants in Egypt to manufacture railway cars, signaling systems, and control and driving equipment, in addition to providing railway engineering services, CEO Lee Young-Bae said. The agreement will also see the South Korean firm transfer technology to Egypt, and came a day after Lee and President Abdel Fattah El Sisi discussed locally producing railcars and signalling equipment, and cooperating over green hydrogen production.
A six-year plan: The government plans to reach a 25% local component quota for the nation’s railway system over the next two years as part of a six-year plan under President Abdel Fattah El Sisi’s directives. The strategy would see the local component quota at 50% after four years and 75% at the end of the six-year period.