Egypt, China’s ZC Rubber sign pact to study $500 mln tyre complex

Egypt and China’s Zhongce Rubber Group (ZC Rubber) signed a letter of intent on Wednesday to study the establishment of an integrated tyre manufacturing complex in the Suez Canal Economic Zone (SCZONE), with estimated investments of about $500 million.

The proposed project would be built in the Sokhna Industrial Zone on an initial area of about 600,000 square metres to be developed in three phases, according to a statement by the Ministry of Investment.

About 95 per cent of the planned output of car and truck tyres would be exported, ZC Rubber Chairman and President Jinrong Shen said.

The proposed complex would include tyre manufacturing lines as well as related industrial, service, and logistics activities, according to the statement.

Investment Minister Mohamed Farid said the project reflected Egypt’s efforts to attract foreign direct investment into higher-value industrial sectors, increase production and exports, deepen local manufacturing, and transfer advanced technology.

“Egypt has the competitive advantages needed to become a regional hub for tyre manufacturing and exports,” Farid said, citing the country’s geographic location, ports, transport networks, and logistics infrastructure.

He said the project’s export focus would allow Egypt to serve markets in Africa, the Middle East, and Europe.

SCZONE Chairman Moustafa Shaikhon said the project was aligned with the authority’s strategy to attract specialised industrial investments, deepen local manufacturing and develop value chains linked to the tyre industry.

The letter of intent provides an initial framework for assessing the project’s technical and investment requirements. The two sides will continue discussions and feasibility studies before moving to implementation, the ministry said.