Schneider Electric plans to boost its investments in the Egyptian market by $8.5 million (€8 million) in 2023, as part of its commitment to the local market, the company said in a statement on November 5.
New investments involve expanding the Badr factory, the region’s largest, and adding new production lines covering a total area of 10,000 square meters. This expansion comes as an effort by the company to localize manufacturing and raise the percentage of local components, which currently stands at 40-60% for all low and medium-voltage products manufactured at the factory.
These products are utilized in various sectors, with over 30% of the factory’s production exported.
This expansion follows previous investments, including $10.7 billion (€10 million) to establish a production line for manufacturing electricity distribution panels and $21.4 million (€20 million) for capital increases and other ventures in 2020.
The company has stated that it aims to promote sustainable development and accelerate digital transformation across various sectors as part of its strategy to bolster operations in Egypt.
“Egypt has significant economic potential in the energy sector and is a key market in the region. We are fully committed to supporting sustainable development in Egypt through our investments in infrastructure and industry,” said Sebastien Riez, cluster president of Schneider Electric Northeast Africa, and Levant.
Riez stressed that the company’s new investment demonstrates the company’s commitment and confidence in the Egyptian market, adding that Schneider’s growth-oriented investment plan aims to expand its network of partners from the public and private sectors and participate in more projects that ensure energy efficiency and sustainability across different industries, including smart buildings and cities, water treatment, the industrial sector, and others.
In 2023, the factory expanded its portfolio of export destinations from 14 countries in the previous year to more than 30 countries worldwide. These countries include the UAE, KSA, Morocco, Tunisia, Algeria, Kenya, Senegal, and others.
Egypt is a key market for Schneider Electric in the Middle East and Africa. With a long history of success in the local market, the company commenced its operations in Egypt in 1987 and invested $320.6 million (€300 million) over 35 years.
In addition to the Badr factory, Schneider Electric owns several assets in Egypt, including the Distribution Center in the 10th of Ramadan City and the Engineering Excellence Center.
Schneider Electric aims to strengthen its footprint and role in more strategic projects focused on achieving energy efficiency and sustainability in different industries.
Its portfolio of projects includes the partnership with the Ministry of Electricity and Renewable Energy to renovate and digitize the national distribution grid, supplying electricity distribution systems to the Benban solar plant – the largest of its kind in the world, involvement in the Jabal Al-Zait wind farms, providing electrical solutions to Al Hammam wastewater treatment plant in New Delta project, and delivering electrical maintenance and automation solutions for the Suez Canal Tunnels. The company has also established multiple partnerships with the private sector in real estate, industrial, and commercial sectors.