On May 2nd, local time, the Haier Egypt Eco-Park in 10th of Ramadan City, Egypt, held its opening ceremony. The eco-park, which is developed in two phases, covers an area of 200,000 square meters and involves an investment of $135 million. It is designed to have a total production capacity of over 1.5 million units and will create 3,000 jobs.
The inauguration of Haier Egypt Eco-Park marks the beginning of the first digital twin eco-park in the Middle East and Africa region. Empowered by Haier's Haina Cloud digital technology, the park ensures full element visibility and control over the entire product production process, aiding Haier in reducing costs, enhancing efficiency, optimizing resource allocation, facilitating scientific decision-making, and achieving intelligent and digitalized production.
The opening of the Haier Egypt Eco-Park supports Haier's localized development in the Egyptian market, transitioning local operations from solely trade and sales to a full spectrum of services including R&D and production. Products are developed based on the actual needs of local consumers. For instance, considering Egypt's unique tropical and high-temperature climate, the eco-park produces the ECO Inverter series of household air conditioners, which use internationally recognized R32 eco-friendly refrigerant. These air conditioners can operate normally in extreme temperatures up to 53°C, and they focus on energy saving, power efficiency, and environmental protection. Haier has maintained a high growth momentum in the Egyptian market, with revenues doubling in the first quarter of 2024 and the Haier brand price index exceeding 150. Some of its mid-to-high-end white goods have achieved a growth rate of 200%, leading the industry.
The operational start of the Egyptian Eco-Park not only satisfies the Egyptian market but also effectively reaches surrounding Middle Eastern markets and even Europe, accelerating Haier's global strategic layout and its ongoing leadership. Data shows that Haier has achieved a doubling in growth over three years in the Middle East and Africa region. Establishing the eco-park in Egypt further meets the demands of surrounding markets while reducing logistics costs, shortening production cycles, and utilizing Egypt’s duty-free policies with some neighboring countries to reduce costs and enhance Haier's overseas profitability.
Egypt is a pivotal country along the "Belt and Road" initiative, maintaining a long-standing friendly relationship with China. The domestic market in Egypt has immense potential, with a population of nearly 110 million, a high proportion of young people, and strong consumer willingness. Additionally, Egypt is both a member of the African Union and the Arab League, benefiting from the strategic location of the Suez Canal that connects the Middle East and Africa, offering convenient transportation without the high investment costs associated with European countries. The Egyptian government also encourages foreign investment in manufacturing, making it an increasingly attractive location for Chinese appliance manufacturers in the region. In recent years, Egypt has been emerging as a regional manufacturing hub and investment hotspot for Chinese appliance companies in the Middle East and Africa, with Haier, Midea, and Vanward among others establishing factories there. The future of "Made in Egypt" Chinese appliances may have even broader development prospects.