Egypt explores localizing electrical equipment manufacturing with Chinese firms

Mahmoud Essmat, Egypt's Minister of Electricity and Renewable Energy, wrapped up his China trip with talks on boosting cooperation to localize electrical equipment production in Egypt. The meetings involved leaders from the Ancora Group and firms specializing in smart equipment and solar solutions. These initiatives aim to bolster local industry and upgrade the national power grid.

During his recent trip to China, Mahmoud Essmat, Egypt's Minister of Electricity and Renewable Energy, held a series of meetings and site visits to advance partnerships in localizing electrical equipment manufacturing. He met with Chen Xiaoling, chairperson of the Ancora Group; another Chen Xiaoling, CEO of a firm specializing in smart electrical equipment and cable terminations; Cao, general manager of the Guitang Group for solar energy support solutions; and Bai Yang, chairperson of the Hongji Group for mining services and equipment.

The discussions centered on cooperation frameworks for setting up production lines in Egypt to localize high- and extra-high-voltage cable terminations, as well as establishing a factory for gas-insulated cable technology and producing installation equipment and smart monitoring systems. These initiatives align with the ministry's strategy to bolster domestic industry, introduce modern technologies, increase local content in renewable energy projects, and upgrade the unified electricity grid across voltage levels.

In talks with Hongji Group officials, Essmat examined the company's mineral extraction operations and kaolin ore processing technologies, used in paper, ceramics, coatings, and other industries, opening avenues to integrate mining outputs into Egypt's industrial chains. With Ancora Group, the conversations covered investment approvals, overseas partnership models, land needs for the initial production line, and the company's expertise in high-voltage gear up to 750 kilovolts, including hybrid gas-insulated transmission lines that cut technical losses by over 60% versus traditional cables, oil-filled extra-high-voltage transformers, gas-insulated switchgear, and modular smart substations resilient to harsh conditions.

Essmat discussed solar power plant opportunities with Guitang Group officials as part of Egypt's push to expand renewables and diversify its energy mix. He stated: "Egypt offers a large and diverse local market, alongside a broad regional market encompassing neighbouring countries," noting existing grid interconnections and trade deals that position Egypt as a regional energy hub. The minister reaffirmed the ministry's support for local and foreign private sector involvement in modernizing the electricity sector, prioritizing locally made products in national projects to enhance efficiency and economic returns.

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