Chinese tyre giant plans production expansion in Egypt – Cabinet
China National Tire & Rubber Co. Ltd. (CNTR), the largest tyre manufacturer in China, is planning to significantly expand its operations in Egypt, with a focus on producing passenger car tyres. The announcement came during a high-level meeting between Egyptian Prime Minister Moustafa Madbouly and a CNTR delegation on Monday.
During the meeting, CNTR Chairman Wang Feng and senior officials from Prometeon Tyre Group Egypt, CNTR’s wholly-owned subsidiary, discussed plans to establish a new tyre manufacturing plant in the country.
Prime Minister Madbouly welcomed the expansion, emphasising the government’s commitment to supporting investments in key sectors, particularly the automotive industry. The meeting, held at the government headquarters in the New Administrative Capital, was also attended by Minister of Industry and Transport Kamel El-Wazir, Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), and other senior officials.
Prometeon Tyre Group Egypt currently operates a heavy-duty tyre factory in El Amria, Alexandria, with an annual production capacity of 1.1 million tyres. The factory exports 70 per cent of its production and employs 2,000 people. With growing domestic demand for tyres in Egypt, the company is now looking to diversify its production by manufacturing passenger car tyres, which will not only cater to local needs but also reduce Egypt’s reliance on tyre imports.
To facilitate the expansion, the Egyptian government has agreed to provide a 180,000-square-metre plot of land adjacent to Prometeon’s existing facility in El Amria. This land will be used to build the new passenger car tyre production line, further boosting local job creation and the company’s exports.
Prime Minister Madbouly reiterated the government’s strong support for the project, emphasising the strategic importance of the tyre industry and the growing demand for tyres in the Egyptian market. He highlighted the importance of expanding local production capacity to meet domestic needs and reduce reliance on imports.
Minister El-Wazir also underscored the significance of Prometeon’s expansion, noting that the company’s current factory produces 1.1 to 1.2 million heavy-duty vehicle and engineering tyres annually. The expansion plan will involve doubling production capacity for heavy-duty tyres and introducing passenger car tyre production, covering local demand and enhancing export opportunities.
Wang expressed his gratitude for the government’s cooperation and stated that the company is eager to proceed with its expansion plans. He mentioned that the investment will be carried out in two phases: the first phase will focus on increasing production capacity for heavy-duty tyres, followed by the establishment of the passenger car tyre production facility.
CNTR expressed confidence in the potential of the Egyptian market. Following the meeting with the Prime Minister, CNTR’s commitment to expanding operations in the country has only strengthened, according to Wang.
The prime minister assured the company of the government’s full support and commitment to facilitating the process. He also suggested exploring various options for acquiring land for the new facility, including potential public-private partnerships or direct land purchases by the company.
Attribution: Amwal Al Ghad English
