Japanese auto parts supplier Yazaki has signed an agreement with the governor of Fayoum state to allocate land for a new plant to be built by the company's local subsidiary in an investment of 30 million euros ($33.27 million), according to a statement by Egypt's Cabinet on Monday.

Located in the Fayoum Free Investment Zone, the project is expected to create 3,500 direct and indirect jobs.

Ahmed Bedewy, vice president of Yazaki Egypt, said the new plant will cover 70,000 square meters and will include free zones, administrative buildings and parking Spaces.

Bedewy added that all products from the new plant will be exported, which contributes to Yamazaki Egypt's goal of increasing annual exports from the Egyptian plant to 100 million euros.

The executive revealed that construction of the project is scheduled to start in October 2023 and end in December 2024.

Headquartered in Japan, Yazaki operates 140 plants in 45 countries around the world producing wiring harnesses, automotive parts and electrical systems. According to Bedewy, the company has annual sales of 12.5 billion euros.

Yamazaki Egypt was awarded the gold license for the project by the Egyptian government in December 2022.

A gold license allows investors to buy or lease land and operate a business on it without further government approval.

The Egyptian cabinet on July 19 issued gold licenses to five projects with a total investment of 10.2 billion Egyptian pounds ($329.34 million).