GB Auto signs agreement with Volvo Buses to boost exports and to support sustainable growth initiatives

GB Auto, a leading automotive company in the Middle East and Africa has signed a Memorandum of Understanding (MoU) with Volvo Buses. The purpose is to strengthen the collaboration on the export of Volvo buses and coaches from Egypt to the region. The agreement marks a step towards more sustainable industrial practices, with a shared focus on expanding capacity and export, investment in cutting edge industrial technology, and generating employment opportunities.

The importance of Egypt as a key trade hub was underscored at the signing event, attended by Benjamin Dousa, Swedish Minister for International Development Cooperation and Foreign Trade, and Egypt’s Minister of Transportation Kamel al-Wazir, along with other high-ranking officials. Both governments reaffirmed the value of strengthening bilateral trade and industrial cooperation.

As part of the agreement, GB Auto is investing in and upgrading its bus manufacturing facility in Ain Sokhna, Egypt. Volvo Buses will support the initiative by providing technical expertise, corporate know-how, and ongoing guidance to enhance production capabilities, optimize quality, and use ethically sourced and sustainable materials.

Karim Gaddas, COO of GB Auto said: “We are delighted to expand our partnership with Volvo Buses to export markets, a testament of GB Auto commitment to build quality buses, meeting and exceeding the industry standards. In 2024, we have started an investment plan, focusing on advanced technologies to upgrade our product performance in terms of design, durability and safety, while reducing our environmental impact.”

Benjamin Dousa, Swedish Minister for International Development Cooperation and Foreign Trade, said: “Egypt is playing an increasingly vital role as a gateway for trade between Sweden, the EU, Middle East and Africa. This partnership between Volvo Buses and GB Auto reflects our shared commitment to innovation, sustainability, and regional growth.”

“This partnership is about expanding our reach and doing so responsibly. It involves integrating a sustainability perspective at every stage of the value chain. By working together with GB Auto, we are taking strategic action to further enhance the production processes and grow exports across the Middle East and Africa,” says Dan Pettersson, Senior Vice President, Business Unit Chassis, Volvo Buses, he added: “This is fully aligned with Volvo Buses’ long-term strategy to create flexible, market-adapted solutions for our customers and work with partners who can tailor production to meet the demands of both local and export markets”

Since the start of their partnership in 1998, GB Auto has served as a regional base for exporting Volvo buses and coaches to countries including Jordan, Oman, Iraq, Cameroon, and Senegal. It’s worth noting that this long-standing collaboration has laid the groundwork for the new Memorandum of Understanding, which builds on this foundation with a clear set of joint objectives: to strengthen quality and expertise, expand export capabilities, and develop premium commercial passenger transport products built on Volvo Buses chassis.