Prometeon in €30m expansion at Egypt tire factory

Milan, Italy – Prometeon Tyre Group (PTG) has implemented a €30-million investment project at its tire plant in Alexandria, Egypt, with the aim of meeting local demand and enhancing safety.

The project, said PTG in an 11 Dec statement, included technology upgrades at the Egyptian factory and an increase in the production of ‘Serie 02’ tires at the plant.

As a result of the upgrades, the facility now produces 1.1 million tires annually, explained Stefano Ziliani, CEO and managing director at Prometeon Tyre Egypt.

According to the ERJ Global Tire Report 2021, the facility had an annual production capacity of 850,000 tires a year before the investment.

The number of employees at the site has also increased from 1,200 to 2,000, according to Ziliani.

“Our 2023 goal will focus on meeting Egyptian market demand by launching innovative tire solutions in Egypt this year: prioritising efficiency, safety, and product quality,” he added.

The project in Egypt, which was launched in the first half of 2022, is part of a series of investments by PTG across its production facilities in Turkey, Egypt and Italy.

In a recent statement, the Aeolus-controlled commercial tire manufacturer said the investments are funded by a €350 million sustainability-linked loan it received at the end of 2021.

As part of the plan, the group noted that it also approved a capacity increase in Turkey in late 2021.

The €40-million investment will increase output at the Kocaeli plant to over 1.8 million pieces per year.

At the same time, a €25-million package, already partly invested, is earmarked for activities across the group’s R&D facilities in Turkey, Italy and Egypt.

The multicurrency revolving credit facility, PTG said, has a three-year duration with an extension option for a further one year.

The Italian manufacturer aims to complete the investments by 2025, targeting areas such as training employees on sustainability issues, reducing waste and controlling the supply-chain through second-party audits.