Shandong Linglong to build $2bn tyre factory in Egypt

• Building factory in Alexandria
• Car and heavy truck tyres
• Exporting to Gulf and US

One of the world’s largest tyre manufacturers plans to invest nearly $2 billion in building a car and heavy truck tyre factory in Egypt for export to the Gulf and US.

China’s Shandong Linglong Tyre Co presented project details during a meeting with Egypt’s investment and foreign trade minister Mohammed Farid in Cairo on Wednesday.

The factory will be based in Borg El-Arab industrial zone in the Northern Mediterranean port of Alexandria, 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.

A Chinese company executive said it selected Egypt for the factory because of its strategic geographic location and existing global trade agreements, the statement added.

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.

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China’s Hubei Xingfa Chemicals Group, one of the world’s largest phosphate producers, 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.

Egypt’s petroleum and mineral resources minister Karim Badawi said the ministry intends to sign an agreement to start the project in three phases.

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