Turkish bus manufacturer TEMSA plans comeback in Egypt – Türkiye Today

Thermo-Mechanics Industry and Trade (TEMSA), one of Türkiye’s leading bus manufacturers, with decades of experience in exporting buses to numerous markets, is considering a return to the Egyptian market.

The company is reportedly exploring the possibility of resuming production in the country where it had previously operated, according to media reports.

The company had invested $40 million in a factory built on an 80,000-square-meter (approximately 861,112 square feet) site in the 10th of Ramadan Industrial Zone, located 50 kilometers (31.06 miles) from Cairo.

With an annual production capacity of 1,000 vehicles, the facility exported buses and midibuses not only to Egypt but also to regional markets including the UAE, Jordan, Lebanon, Sudan, Libya, Tunisia, Algeria and Saudi Arabia.

TEMSA had previously operated in the Egyptian market in past years before ceasing its activities in 2011.

If it returns, the company is expected to focus on producing buses for public and tourist transportation, backed by local partners.

The company had previously entered the Egyptian market in 2009, but its operations gradually came to a halt due to market shifts and weak operational partnerships at the time, particularly following global economic turmoil and the aftermath of the January 2011 revolution.

TEMSA Egypt was the result of a partnership between Türkiye’s TEMSA Global, which held a 65% stake, and the Egyptian El Ashen Group, a leading player in various metal and plastic industries, which owned 35%. An industrial complex was established to serve as an export hub for the Middle East and Africa.

The Turkish company, as part of its current market assessment, would reportedly focus on producing buses for public and tourist transportation within Egypt, with possible plans for export.

Meanwhile, the Egyptian government has launched a new incentive program aimed at boosting local manufacturing and strengthening the automotive industry.

Approved in May, the program offers various forms of financial support to companies that commit to increasing their local production rates, achieving specific annual production capacities, and adopting environmentally friendly manufacturing practices.

TEMSA’s potential return to Egypt is seen as likely to gain momentum by taking advantage of the benefits offered under this initiative.