Egypt signs $300 million tire steel project with China's Zenith Group

Cairo – Egypt has signed an agreement with China's Zenith Group to build a $300 million (€260 million) facility producing tire steel reinforcement materials at the Suez Canal Economic Zone (SCZone).

The project, located within the TEDA Egypt industrial zone, will produce 120,000 tonnes/year of steel cord for tires and 50,000 tonnes/year of bead wire, according to a 1 July social media post by the Egyptian government.

The facility will occupy 320,000 sq.m. and create about 1,000 direct jobs, according to the post.

Some 30% of production is earmarked for export to markets in the Middle East, Europe and the US.

Prime Minister Mostafa Madbouly said the investment forms part of Egypt's strategy to deepen domestic manufacturing and attract advanced industries.

"The project represents a quality addition to the engineering and raw materials sectors," he said, adding that it reflects "the growing confidence by major global corporations in Egypt's investment climate."

The project will strengthen industrial integration with existing tire manufacturing operations in the SCZone, according to Walid Gamal El-Din, chairman of the SCZone.

The plant, he said, will create "an integrated production system" spanning intermediate raw materials through to finished products.