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Honor and Valeo announce new facilities in Egypt

Honor and Valeo announce new facilities in Egypt

Two recent announcements, from smart devices provider Honor and smart mobility specialist Valeo, have underlined the strategic important of Egypt to Middle Eastern and African ITC by growing their presence in the country.

China-headquartered Honor is reportedly looking to expand mobile phone manufacturing in Egypt as part of a strategy to position the country as a regional hub for the Middle East and Africa.

Honor intends to manufacture smartphones through its new factory in 10th of Ramadan City near Cairo, which is its first overseas factory outside China. The facility is a collaboration with Etisal Trading, a local consumer electronics company.

According to the ITWeb Africa news service, the site spans 8,000 square metres, with 5,000 square metres allocated to production, and has an annual production capacity of three million units. The facility is in a trial operation phase; it is expected to be officially launched before the end of 2026.

The strategy focuses on producing high-quality devices at competitive prices to meet local needs and enhance exports under the Made in Egypt label. The partnership aims to ensure the transfer of global manufacturing technologies to Egyptian professionals.

The project is expected to create 1,000 job opportunities for Egyptian professionals.

As ITWeb Africa points out, Egypt has become an increasingly attractive destination for handset assembly, with companies like Vivo, Nokia and Samsung already establishing local production lines.

This trend is driven by government incentives intended to reduce the country’s import bill and transform it into a manufacturing gateway for the African Continental Free Trade Area, which aims to establish a single liberalised market encompassing most of Africa.

Meanwhile Valeo says that, as the automotive industry undergoes a transformation driven by artificial intelligence, it is reinforcing its position at the forefront of smart mobility by launching a new AI development centre in Cairo. 

Starting with over 50 engineers and with plans to expand to over 100 specialists in the near future, the Cairo centre is focused both on accelerating global AI integration across all Valeo organisation functions to generate a boost in productivity and also on developing high-level tools essential for next-generation smart mobility software. 

By scaling its AI operations in Cairo, Valeo says it is empowering local expertise to fast-track the integration of AI into its embedded software as well as its software production, which will in turn increase competence and help deliver competitive products to its customers.

Since its establishment in 2005, Valeo Egypt has evolved into the largest software R&D centre in North Africa and within the Valeo Group. With a talent pool of 3,000 engineers, the site now contributes to roughly 50% of the Group’s global software production.



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