Egypt in talks with China’s Shandong Linglong on $2 bln tyre complex

Egypt is in talks with China’s Shandong Linglong Tyre Co., Ltd., to develop a $2 billion tyre manufacturing complex in Borg El Arab, the Ministry of Investment said on Wednesday.

The project, discussed with Investment Minister Mohamed Fayed, would be developed under Egypt’s special free zones system, which offers tax and customs incentives for export-focused industries.

The planned facility would cover up to 3 million square metres and produce tyres for passenger cars and heavy vehicles, as well as inputs including rubber and carbon black, the ministry said. Around 90 per cent of output would be exported, mainly to the United States and Gulf markets.

Shandong Linglong would develop the project in partnership with Egypt’s Nile Projects & Trading Co. and Supplies (Fit & Fix), the ministry said, adding the project would help establish an integrated industrial base for tyre manufacturing.

Fayed said Egypt is prioritising investments that support technology transfer and local production to strengthen industrial capacity and boost export competitiveness, particularly in automotive-related sectors.

He said Egypt’s investment framework, including free zones and special investment zones, is designed to simplify procedures and position the country as a hub for high-value manufacturing.

Shandong Linglong officials said Egypt offers strong fundamentals for regional manufacturing and export activity, citing its geographic location and trade agreements. They said the company plans to transfer technology to support local industrial development.

The company said it will continue discussions with Egyptian authorities to secure the necessary approvals before moving forward with the project.

Attribution: Amwal Al Ghad English