3 days ago
AOI, China's XGY partner to localize medical devices manufacturing in Egypt - Health
The Arab Organization for Industrialization (AOI) and Chinese company XGY Medical Devices inked a partnership agreement on Wednesday to establish the Arab-Chinese Medical Industries Company for localizing medical device manufacturing.
The signing took place on the sidelines of the fourth Africa Health ExCon 2025's opening, organized by the Egyptian Authority for Unified Procurement (UPA) from 24 to 27 June under the theme: "Innovation and Independence: Harnessing Artificial Intelligence and Local Manufacturing to Strengthen African Health Systems."
Major General Mokhtar Abdel-Latif, chairman of AOI's board of directors, and Jiao Da Tian, chairman of XGY Medical Devices, signed the partnership. Egyptian Minister of Health Khaled Abdel-Ghaffar also witnessed the signing.
In an AOI statement, Abdel-Latif said the agreement includes establishing a joint company to localize the medical device industry.
The company will start with diagnostic and therapeutic radiology equipment in the first phase, leveraging AOI's advanced manufacturing capabilities.
He added that the goal is to reduce the cost of imported technological components by designing and manufacturing them within AOI for the first time in Egypt, achieving complete localization of this vital industry.
He further explained that the cooperation will include specialized training programmes for engineers and technicians working in the new joint company, along with providing maintenance services and spare parts.
Abdel-Latif affirmed the AOI's commitment to forming strategic and productive partnerships with the global Chinese company to expand cooperation in the medical device manufacturing field according to international quality standards.
The partnership aims to increase market access, meet local demand, reduce reliance on imports, and open export channels to African, Arab, and global markets at competitive prices.
For his part, XGY's chairman expressed his pride in collaborating with the AOI.
"This partnership reflects strong confidence in AOI's advanced manufacturing capabilities," he stressed.
He further emphasized XGY's commitment to fully transferring its technology to Egypt through the joint venture with AOI.
"This would enhance cooperation and expand export opportunities by capitalizing on Egypt's successful investment climate," he added.
XGY Medical Devices, established in 1998, is a high-end medical equipment manufacturing project jointly constructed by Zhejiang Xingaoyi Medical Equipment Co., Ltd., Shandong Longzhiyuan Medical Equipment Co., Ltd., and Junan Caijin Group in 2022.
The company integrates research and development, production, sales, and after-sales of magnetic resonance equipment.
The partnership follows a cooperation protocol signed in May with Philips to localize the medical device industry and boost Egypt's capacity in biomedical engineering.
The protocol includes feasibility studies for domestic production, development of device components, and establishment of a specialized biomedical engineering centre for knowledge transfer.
In 2023 alone, Philips, a global tech company, made 607 medical technology patent applications, becoming the second largest applicant in the medical technology field in the European Patent Office (EPO) index.
"ExCon 2025 will witness the signing of 15 agreements and contracts in the fields of medical tourism for African countries, as well as strategic partnerships to reform healthcare systems in several African nations," General Authority for Healthcare (GAH) Chairman Ahmed El-Sobky said on the sidelines of the conference.
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