Chinese Tire Giant Plans $550 Million Heavy-Duty Tire Factory in Alexandria

Egypt's industrial sector is set to receive a major boost as the China National Tire & Rubber Corporation explores a significant expansion in the local market. Minister of Industry Khaled Hashem held an extensive meeting with a high-level delegation from the Chinese company, including President Wang Jian Jun, and Omar Mohanna, Head of Prometion Tires Egypt. The discussions focused on the company's ambitious plan to establish a new manufacturing facility in Alexandria, representing a fresh wave of Chinese investment in the country's automotive supply chain.

Project Scope and Production Capacity

The proposed factory will be located in the Amreya district of Alexandria, on a plot of land adjacent to the company's existing plant. The total new investment stands at $550 million, channeled through Prometion Tires Egypt. The facility will specialize in producing tires for heavy-duty trucks, engineering equipment, and agricultural tractors—segments with growing demand both domestically and regionally. The project is expected to add an annual production capacity of 1.5 million tires, with commercial operations slated to begin in early 2028. In addition to the new plant, the plan includes upgrading and enhancing the efficiency of the current production lines.

Economic Impact and Job Creation

Beyond the production boost, the new factory is projected to create 1,600 direct new job opportunities, contributing significantly to local employment. The project also aims to transfer modern tire manufacturing technologies to Egypt and increase the country's exports of this strategic product. During the meeting, the company discussed several requests related to securing the industrial land, obtaining necessary permits, and determining the number of foreign experts required for knowledge transfer. The discussions also covered the company's efforts in energy and water conservation, including water treatment for reuse in manufacturing processes.

Regulatory Support and Local Manufacturing Push

Minister Hashem emphasized the need for the plant to rely on solar energy for its operations and to increase the local content ratio in the company's products. He noted that the law favoring local products in government procurement is being activated to boost demand for domestically manufactured goods. The meeting also addressed tightening controls on imports that do not meet specifications or are dumped, as well as strengthening anti-subsidy and anti-dumping measures. The minister reaffirmed the ministry's full support for the company's expansion plan, pledging to overcome any obstacles with relevant authorities.

Strategic Vision for the Automotive Sector

Hashem urged the company to focus on manufacturing passenger car tires, describing them as one of the most critical feeder industries for the automotive sector. This aligns with the state's current focus under the national automotive industry development program. The project underscores growing Chinese investor confidence in Egypt's investment climate and the country's ability to attract large-scale industrial ventures with high added value. With production set to begin in 2028, the new facility is poised to strengthen Egypt's position as a regional manufacturing hub for tires and automotive components.