Egypt and Chinese companies jointly build tire factory

According to foreign media reports, the Egyptian government is set to sign an agreement with a Chinese company to establish a car tire manufacturing plant in the Suez Canal Economic Zone. The project involves a total investment of $360 million (approximately 2.6 billion RMB).

The land for the project will be provided by Egypt's largest industrial group, the Arab Organization for Industrialization (AOI). The Chinese company will provide the investment and hold a 52% stake in the joint venture. The project’s initial phase is expected to achieve an annual tire production capacity of 6 million tons, with the final capacity reaching 12 million tons. Production is scheduled to begin by the end of 2025.

As early as 2018, there were reports of a joint venture between Egypt and China to build a tire factory. The key partners in this initiative are believed to be China Poly Group Corporation and the Egyptian military. In 2023, China Railway 16th Bureau signed a cooperation agreement with the Arab Organization for Industrialization, which also included the tire factory project.

It is currently unclear whether these projects are part of the same initiative. In response to related rumors, AOI Chairman Mokhtar Abdel Latif has denied their authenticity. Nevertheless, the potential for industrial cooperation between Egypt and China continues to attract attention. If the project proceeds as planned, it is expected to bring significant economic benefits to Egypt, further developing the Suez Canal Economic Zone and deepening industrial collaboration between the two countries.

（This article is organized by Wetire website, and the information comes from tireworld Network）