Major Chinese Tire Company Plans Second Factory in Egypt with $550 Million Investment
China National Tire & Rubber Co, one of the largest tire manufacturers in China and globally, has announced plans to expand its investments in the Egyptian market by building a second factory in the Amreya district of Alexandria, with an investment of $550 million.
The announcement followed a recent visit by a high-level delegation from the company to Egypt, where they met with Hussein Issa, Egypt's Deputy Prime Minister for Economic Affairs, to discuss expansion plans and increased local production. The Chinese delegation was led by Wang Jianguo, Chairman of the company, along with Sun Ding, Vice Chairman, and Omar Mehanna, Chairman of Prometeon Tyres, which is owned by the Chinese firm.
Strategic Focus on Local Tire Manufacturing
Egyptian officials emphasized the importance of expanding the company's investments in the country, highlighting the government's focus on growing the tire industry due to its links to multiple service and production sectors. The Deputy Prime Minister stressed Egypt's ambition to become a regional hub for tire manufacturing, leveraging its strategic location, modern logistics network, and free trade agreements. He also called for the company's expansion to include the production of passenger car tires.
Investment Details and Production Capacity
The new $550 million investment will be carried out through Prometeon Tyres Egypt and includes the construction of a new factory adjacent to the existing facility in Amreya, along with upgrades to current production lines. The new plant will add an annual production capacity of 1.5 million tires, effectively doubling the company's output of truck and equipment tires. This will help meet local demand while also supporting exports to international markets.
Current Operations and Export Focus
The existing Prometeon factory in Amreya currently produces approximately 1.1 million tires annually, specializing in heavy truck and engineering equipment tires. About 70% of its output is exported to foreign markets. The Chinese company, which owns eight other subsidiaries, views Egypt as a strategic manufacturing and export hub for the region.
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