M1A1 Abrams tanks
US military aid finances most of Egypt's big-ticket defense procurements - $1.3 billion annually for several years. Large projects underway include the M1A1 Abrams tank manufacturing facility and the M88A2 coproduction program.
Egypt obtained US approval in 1984 to build a factory to produce new tanks. Under the initial agreement, the Egyptians would assemble 524 M1A1 tanks, and Egyptian officials hoped that this number would eventually rise to 1,500 tanks. Six production cycles were established initially, with each increment increasing the level of technology from General Dynamics Land Systems. Beginning in mid-1992, Egypt started assembling M1A1 tank components imported from the United States. Egypt manufactured about 40% and imported 60% of the components for the 555 tanks produced. The cost was estimated at $3.2 billion. The Egyptians also will produce the 120-mm cannon as well as an increasing number of parts for the tank. Egyptian officials say the goal is to make Cairo self-sufficient in tank production.
On March 11, 1999, Defense Secretary Cohen announced a $3.2 billion arms sale to Egypt that includes 24 F-16 aircraft, 200 M-1 tanks, and a Patriot missile battery. Under the proposal announced in March 1999, Egypt would assemble another 200 M1 tanks.
In July 1999 the Government of Egypt requested a co-production program for the possible sale of 100 M1A1 Abrams tanks to include 100 M256 Armament Systems, 100 M2 .50 caliber machine guns, 200 M240 7.62mm machine guns, 12 M16A2 rifles, spare and repair parts, support and test equipment, personnel training and training equipment, U.S. Government and contractor engineering and logistics support services, technical assistance and support, and other related elements of logistics support. The estimated cost is $564 million. This proposed sale will increase the quantity of the Abrams tank co-production program, started in 1988 with a quantity of 530 tanks, to 630 tanks. Egypt, which already co-produced the M1A1 Abrams tanks, will have no difficulty absorbing the additional tanks. The prime contractor will be General Dynamics, Sterling Heights, Mich. There are no offset agreements proposed to be entered into in connection with this potential sale.
In March 2000 a study on the production of the American tank M1A2 in Egypt was reported to have "entered an important stage" though ongoing negotiations in this respect continued.
On 27 July 2001, the Defense Security Cooperation Agency notified Congress of a possible Foreign
Military Sale of equipment and services to support a possible sale of M1A1 Abrams Tanks to the Government of Egypt. The Government of Egypt (GOE) has requested a coproduction program for the possible sale of 100 M1A1 Abrams tanks kits to include 100 M256 Armament Systems, 100 M2 .50 caliber machine guns, 200 M240 7.62mm machine guns, 12 M16A2 5.56mm rifles, spare and repair parts, support and test equipment, personnel training and training equipment, U.S. Government and contractor engineering and logistics support services, technical assistance and support, and other related elements of logistics support. The estimated cost is $590 million. The GOE is demilitarizing its Soviet fleet. This proposed sale will increase the quantity of the Abrams tank coproduction program, started in 1988, from the current level of 655 tanks, to 755 tanks. The additional M1A1 tanks will modernize Egypt's tank fleet. Egypt, which has already co-produced the M1A1 Abrams tanks, will have no difficulty absorbing the additional tanks. The prime contractor will be General Dynamics of Sterling Heights, Michigan. There are no offset agreements proposed in connection with this potential sale.
