Linglong eyes $2bn Egypt tire complex with export focus

Cairo — China’s Shandong Linglong Tire is in talks with Egypt’s Ministry of Investment and Foreign Trade to establish a $2 billion (€1.7 billion) integrated tire manufacturing complex, with plans to export the bulk of output to overseas markets including the US and Persian Gulf states.

The project, under discussion with local partner Nile Co. for Projects and Trade (Fit & Fix), would be developed in the Borg El Arab area, southwest of Alexandria, said the Egyptian ministry in a social media post 29 April.

The plant is expected to operate under a private free zone regime, with around 90% of production earmarked for export, it added.

The complex will produce passenger car and truck tires and will include upstream “nutritive industries” such as rubber and carbon black, according to the post.

The “vertically integrated setup” is aimed at securing inputs and improving cost competitiveness.

The social media post did not provide details about production capacity or a timeline for the project.

Linglong’s general manager for project & investment management, Sophie Lee, said the company saw Egypt as “a suitable regional hub for manufacturing and export” given its location and trade agreements.

“We seek to transfer technology to the Egyptian market to enhance industrial capabilities,” she added, noting the complex will be built based on "latest technologies."

The parties are assessing implementation via the special free zone system, which offers customs and tax incentives and streamlined procedures for export-oriented manufacturing.