BAIYU Signed Agreement for New Energy Free-Trade Zone and Logistics Park in Egypt

Rhea-AI Summary

BAIYU Holdings has signed an agreement with Adler International to develop a significant renewable energy project in Egypt. The project includes constructing a renewable energy free-trade zone in Cairo covering approximately 666.67 hectares and a logistics park near the Port of Alexandria spanning about 200 hectares.

The Egyptian government has designated both facilities as bonded free-trade zones with autonomous preferential policies and offers incentives for talent development. BAIYU will provide supply chain procurement services for new energy vehicle manufacturing, targeting markets in Africa, Europe, the Middle East, and the Mediterranean, with an estimated annual demand of 200,000 vehicles. The company also plans to establish charging pile and lithium battery industries in Egypt under its own brand.

Positive

• Secured agreement for large-scale renewable energy infrastructure development in Egypt
• Government-backed free-trade zone status with preferential policies
• Access to market potential of 200,000 vehicles annually across multiple regions
• Expansion into EV supply chain and battery manufacturing with own brand

Negative

• Significant capital investment required for infrastructure development
• Execution risks in new geographical market
• Potential political and economic risks in emerging market operations

Insights

Financial Analyst

The agreement to develop a major industrial and logistics complex in Egypt represents a strategic expansion for BAIYU Holdings. The 13,000 mu (approximately 2,134 acres) development combines renewable energy manufacturing with logistics infrastructure, positioning BAIYU to capture value across the supply chain. The free-trade zone status and government incentives significantly reduce operational costs and tax burden.

The potential market for 200,000 vehicles annually across Africa, Europe and the Middle East presents substantial revenue opportunities. Egypt's strategic location and preferential trade agreements with these regions provide competitive advantages for export operations. The vertical integration into charging infrastructure and battery production creates additional revenue streams while controlling critical supply chain components.

However, execution risks include geopolitical instability in the region, currency fluctuation exposure and significant capital requirements for infrastructure development. The project's success depends heavily on Egypt's political stability and economic policies remaining favorable.

Market Research Analyst

This strategic move aligns with the growing electrification trend in emerging markets, particularly Africa where EV adoption is expected to accelerate. Egypt's position as a gateway between Africa, Europe and the Middle East creates a compelling hub for automotive manufacturing and distribution. The free-trade zone status will enable BAIYU to optimize costs while accessing multiple high-growth markets.

The commitment to local talent development and manufacturing suggests a long-term approach to market penetration. By establishing local production capabilities for EVs, charging infrastructure and batteries, BAIYU is positioning itself as an early mover in Egypt's emerging EV ecosystem. The government's support through preferential policies reduces market entry barriers and operational risks.

For simplified understanding: Think of this as building a massive 'EV factory city' with special tax benefits, where BAIYU can make and ship electric cars to three continents while paying lower taxes and having easier trade rules.

SHENZHEN, China, Dec. 24, 2024 /PRNewswire/ -- In the process of globalization and international market competition, Chinese enterprises face various opportunities and challenges. After years of engaging in bulk trade and supply chain services, BAIYU Holdings Limited has successfully accumulated a large number of high-quality overseas customers and suppliers. Leveraging its accumulated strength, the company is now embarking on a multifaceted global expansion into new sectors.

In December 2024, BAIYU Holdings, Inc. signed an agreement with Adler International Ltd., an Egyptian company, to construct a renewable energy free-trade zone and logistics park in Egypt. The agreement outlines plans to establish a renewable energy industry free-trade zone in Cairo, Egypt, covering an area of approximately 10,000 mu (a traditional Chinese land measurement unit, approximately equal to 666.67 hectares or 1,640 acres), and to build a bonded warehouse and logistics park covering about 3,000 mu (approximately 200 hectares or 494 acres) in the Port of Alexandria or other nearby dock areas in Egypt.

The Egyptian government has granted autonomous preferential policies to the park, designating both the new energy industrial park and the logistics park as bonded free-trade zones. Additionally, the Egyptian government offers incentives for the introduction of high-level talent and the training of local talent.

Beyond the establishment of the new energy free-trade zone and logistics park, BAIYU Holdings will also provide full supply chain procurement services for new energy vehicle manufacturing. The vehicles produced can be exported to Egypt and surrounding countries and regions, such as Africa, Europe, the Middle East, and the Mediterranean, with an annual market demand of nearly 200,000 vehicles.

This initiative will also lead the landing of charging pile and lithium battery industries in Egypt, with production, manufacturing, and market sales conducted in Egypt under the company's own brand.

About BAIYU Holdings Limited

BAIYU Holdings, Inc. was incorporated in Delaware in December 2011. Initially, the company's primary business was providing lending and financial guarantee services to small and medium-sized enterprises or individuals, and it also developed operations and leasing services for used luxury cars in China. In 2020, through an asset reorganization, the company's main business was transformed into commodity trading and supply chain services. Building on this core business, the company has expanded into the renewable energy sector, encompassing the research and development, production, and sales of energy storage power supplies and lithium batteries, the construction and operation of charging and battery-swapping stations, and integrated services, as well as the dismantling of used cars and the sale of auto parts. Adhering to the development philosophy of "Innovation, Integrity, and Excellence," the company continues to deepen its presence in the renewable energy industry, striving to create more competitive environmentally friendly and energy-saving products for the markets it serves and enhancing its brand reputation. For more information, please visit www.baiyuglobal.com.

For more information, please contact:

BAIYU Holdings, Inc.
Investor Relations Department
Email: ir@baiyuglobal.com

View original content:https://www.prnewswire.com/news-releases/baiyu-signed-agreement-for-new-energy-free-trade-zone-and-logistics-park-in-egypt-302338826.html

SOURCE BAIYU Holdings, Inc.

FAQ

What is the size of BAIYU's planned renewable energy free-trade zone in Cairo?

The renewable energy free-trade zone in Cairo will cover approximately 666.67 hectares (10,000 mu or 1,640 acres).

How large is BAIYU's planned logistics park in Alexandria, Egypt?

The logistics park will cover approximately 200 hectares (3,000 mu or 494 acres) near the Port of Alexandria.

What is the annual market demand for vehicles in BAIYU's target regions?

The annual market demand is estimated at nearly 200,000 vehicles across Africa, Europe, the Middle East, and the Mediterranean regions.

What incentives has the Egyptian government offered for BAIYU's project?

The Egyptian government has granted autonomous preferential policies, designated both facilities as bonded free-trade zones, and offers incentives for high-level talent introduction and local talent training.

What additional industries will BAIYU develop in Egypt?

BAIYU will develop charging pile and lithium battery industries in Egypt under its own brand, including production, manufacturing, and market sales.