M1A1 Abrams tanks made in Egypt

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.

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 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 was General Dynamics of Sterling Heights, Michigan. There are no offset agreements proposed in connection with this potential sale.

Key U.S. government, contractor, and Egyptian Army personnel celebrated the successful completion of production qualification testing of the third generation Government of Egypt 120mm Armor Piercing Fin-Stabilized Discarding-Sabot-T KE-WA2 tank round at the Aberdeen Test Center, Aberdeen Proving Ground, Md., in July 2003. The KE-WA2, developed by General Dynamics Ordnance and Tactical Division was approved for production in early September, pending approval of a new FMS case. In addition to a full inventory of developmental, training, and production munitions that are managed or supported by the Office of the Project Manager, Maneuver Ammunition Systems, OPM MAS has enjoyed an interesting, long-term relationship with the government of Egypt.

In 1994 the Egyptian government approached the U.S. government for development and production of a kinetic energy tank munition to support their Abrams fleet. Using tungsten alloy as the anti-armor penetrator, or ôkill mechanism,ö the initial cartridge, was called the KE-W û ôWö is the periodic table symbol for tungsten. In 1998 a second FMS case was implemented, calling for a more advanced cartridge, the KE-WA1. In both cases GD-OTS (formerly Primex Technologies) was the prime contractor. Additional quantities of KE-WA1 were provided by a subsequent FMS case approved in 2001.

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