Raya Holding to invest EGP 100 million in making light transport vehicles in Egypt
In line with the Egyptian government’s efforts to fight unemployment by providing job opportunities for young people as well as support small businesses, Raya Holding announced a new project for the assembly and manufacture of light transport vehicles. With an initial investment of EGP 100 million, subsidiary Raya Advanced Manufacturing Co. will spearhead the effort with Piaggio, a world leader in light vehicle manufacturing.
The project was announced at a press conference attended by Giampaolo Cantini, the Italian Ambassador to Egypt; Raya Holding Chairman and CEO Medhat Khalil; Raya Advanced Manufacturing Chief Executive Officer Usama Zaki; Raya Advanced Manufacturing Chief Operating Officer Tamer Abdul Aziz; Aman For Financial Services Chief Executive Officer Hazem Moghazi; and Rubino Sergio, Piaggio’s Senior Vice President in charge of foreign Markets.
Khalil said he was enthusiastic to be cooperating with Italy’s Piaggio Group, noting that the company has a vision of helping to deepen and expand Egypt’s light transport industry with many locally-made components. By drawing on Italy’s legendary vehicular craftsmanship to train young Egyptian workers, the project has the potential to open new horizons for young people and reduce unemployment.
Zaki, CEO of Raya Advanced Manufacturing, pointed to Piaggio’s 130-year-old legacy of making vehicles ranging from motorcycles, scooters and bicycles to three-wheel vehicles commonly known as tuk-tuks in Egypt as well as four-wheel commercial and electric vehicles. Piaggio is the largest European maker of two-wheeled motor vehicles, including the world famous Vespa. “The selection of Piaggio is based on a careful deliberation of the Egyptian market
requirements, taking into consideration the highest safety standards, the highest environmental compatibility rates and quality standards,” said Zaki.
He added that Piaggio and Raya have designed the production line in a manner that ensures the highest quality and safety standards. A team of engineers and technicians have completed training courses in skills ranging from assembly and after-sales service based on practices at Piaggio factories in Italy and India. The new plant is expected to create around 1,000 direct and indirect jobs for Egyptians in the next two years. It’s scheduled to begin production by mid-2018 in the 10,000-m2 factory.
In order to make the new vehicles affordable to a broad cross-section of Egyptians, Raya will provide various financing offers to young people through easy installments. It also aims to encourage young people to invest in micro-enterprises since Egypt “has nearly 80,000 tuk tuks annually and is expected to reach, per market studies, 120,000 tuk-tuks by 2020,” said Zaki.