Cairo: Egypt's Kasrawy Group signed Tuesday a $123 million agreement with Chinese automaker Jetour to locally assemble Jetour T1 and T2 cars, in a move Egyptian Prime Minister Moustafa Madbouly said would boost the country's car manufacturing ambitions.

According to State Information Service Egypt, the deal, signed at the Cabinet headquarters in Egypt's New Administrative Capital, includes plans to establish a new automotive assembly plant in the industrial zone of 6th of October City. The plant will feature welding, painting, and final assembly lines and is expected to generate around 1,500 jobs, according to Kasrawy Group Chairman Mohamed El-Kasrawy.

Prime Minister Madbouly stated, 'The agreement marks a significant addition to our strategy for localizing the automotive industry,' while noting that Egypt's auto sector strategy continues to attract global players with a growing number of similar deals signed in recent months.

The new facility will cover 86,000 square metres and will serve both local and export markets, El-Kasrawy said. The company also announced the launch of the locally assembled Jetour X70 Plus, with an initial production target of 5,000 vehicles per year.

The signing ceremony was attended by Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir, Jetour Global executives, and senior government and company officials.