Chinese company to build $2bn tire factory in Egypt

China’s Shandong Linglong Tire Co. intends to invest nearly $2 billion to build a car tire factory in Egypt, with most of its output to be exported to the Gulf countries and the US.

Shandong Linglong, one of the world’s largest tire manufacturers, presented project details during a meeting in Cairo on Wednesday with Egypt’s investment and foreign trade minister Mohammed Farid.

The project, to produce car and heavy truck tires, will be based in Borg El-Arab industrial zone in the Northern Mediterranean port of Alexandria and spans nearly 3 million square metres, the ministry said in a statement on its website.

“The project will be established in partnership with Egypt’s Nile Trade company and nearly 90 percent of its products will be exported to foreign markets, mainly the US and Gulf countries,” the statement said, adding that the project will be governed by Egypt’s free zone rules.

The statement said a Chinese company executive noted during the meeting that it has selected Egypt for the project because of its strategic geographic location and existing global trade agreements.

The announcement came two days after another Chinese business team met officials in Cairo and revealed projects worth billions of dollars, including a $2 billion trade city.

Chinese companies are among the largest foreign investors in Egypt, mainly in chemicals, textiles, energy and light industrial products.

A Chinese company also said in January that it plans to invest around $2 billion to hunt for phosphates in Egypt’s ‘golden triangle’ area, home to nearly half the country’s gold deposits.

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Egypt’s petroleum and mineral resources minister Karim Badawi discussed the plan at talks with Hubei Xingfa Chemicals Group, one of the world’s largest phosphates producers, according to the Egyptian ministry.

Badawi said the ministry intends to sign an agreement with the Chinese company to start the project in three phases.

Spanning over 9,000 square kilometers, the golden triangle is located in southeast Egypt and involves investments of more than $16 billion over 30 years.