Egypt to Manufacture Passenger Car Tires: $550 Million Investment to Reduce Import Bill

Egypt's Minister of Industry, Engineer Khaled Hashem, has announced ambitious plans to localize the production of passenger car tires in the country. The announcement came during an expanded meeting with representatives of the China National Tire and Rubber Company, led by Chairman Wang Jianjun. The meeting was attended by Omar Mohanna, Chairman of Prometeon Tyres Egypt, along with Engineer Mohamed Zada, Assistant Minister for Strategic Industries, Engineer Mohamed Sami, Assistant Minister for Strategic Affairs, and several ministry officials.

New Alexandria Plant to Add 1.5 Million Tires Annually

During the meeting, the company outlined plans to establish a new factory in Egypt, focusing on the production of heavy transport tires, engineering equipment tires, and agricultural tractor tires. The project involves new investments totaling $550 million through Prometeon Tyres Egypt. The facility will be built in the Amreya district of Alexandria Governorate, on a plot adjacent to the existing plant. In addition to upgrading current production lines, the new plant will add an annual production capacity of 1.5 million tires. Operations are scheduled to begin in early 2028, creating 1,600 direct new jobs, facilitating technology transfer, and boosting Egypt's exports in this sector.

Government Support for Deepening Local Manufacturing

Minister Hashem affirmed that the Ministry of Industry fully supports the company's expansion plans and will make every effort to remove any obstacles, both within the ministry and with other relevant parties, while streamlining industrial licensing procedures. He emphasized the importance of focusing on manufacturing passenger car tires, which are a critical feeder industry for automotive manufacturing. This aligns with the national program for automotive industry development, aiming to reduce the import bill for car components and deepen local manufacturing.

Company Requests and Stricter Import Controls

The meeting also addressed several requests from the company, including support for obtaining industrial land, securing licenses, and facilitating the entry of foreign experts for knowledge transfer. The company called for stricter controls on imports that do not meet specifications or are dumped, as well as tighter anti-subsidy and anti-dumping measures to protect local production.

Sustainability and Solar Energy in Manufacturing Plans

Discussions covered the company's efforts in energy and water conservation, as well as water treatment for reuse in manufacturing processes. The minister stressed the necessity of relying on solar energy to power the new plant, alongside increasing the local content ratio in the company's products, thereby enhancing sustainability and supporting the national economy.