Prometeon mulls $400m expansion in Egypt to add car tire capacity

Cairo – Prometeon Tyre Group is planning a major expansion of its Egyptian operations, with a proposed $400-million (€345 million) investment to raise output and upgrade its existing plant in Amreya, Alexandria.

In a 25 Nov social media post, Egypt’s ministry of investment and foreign trade said the proposal was discussed at a meeting in Cairo between investment minister Hassan Al-Khatib and senior executives from China National Tire & Rubber Co. (CNRC) and its subsidiary Prometeon.

According to the post, Prometeon currently produces around 5.2 million commercial tires a year in Egypt.

The new investment, it said, will support the production of “1 million additional car tires” and improve the efficiency of the existing factory through technology upgrades.

As part of the expansion, Prometeon is seeking an additional 200,000 sq.m. of land adjacent to its Amreya site.

The Aeolus-controlled, Milan-based tire maker is also asking the government to establish a dedicated free zone to serve the new operations, with the aim of exporting “entirely abroad.”

In its social media post, the ministry said the ‘general authority for investment’ is expected to provide the company with the required support and information to accelerate the project.

Al-Khatib praised "the positive progress” of Prometeon’s expansion plans and said the ministry “will spare no effort to meet the company’s requirements,” particularly in relation to investment facilitation and competition safeguards.