ZC Rubber plans $500m tire complex in Egypt

Cairo – China’s Zhongce Rubber Group Co. (ZC Rubber) has signed a letter of intent to study the establishment of an ‘integrated industrial project’ for tire manufacturing in Egypt, involving an estimated investment of $500 million (€431 million).

The proposed complex will be located in the Ain Sokhna Industrial Zone within the Suez Canal Economic Zone and will initially cover 600,000 square metres, according to a 2 Sept statement by the Egyptian government.

The project is planned to be implemented in three phases and will include tire manufacturing lines as well as related industrial, service and logistics activities, the statement said without offering further details on product types or project timeline.

According to ZC Rubber chairman and general manager Shen Jin Rong, around 95% of production of car and truck tires is expected to be directed towards export.

He added that the project would “leverage the logistical advantages and advanced infrastructure of the Ain Sokhna Industrial Zone” to support ZC Rubber’s expansion into regional and international markets, particularly in the Middle East, Africa and Europe.

The project reflects Egypt’s focus on “attracting foreign direct investment to value-added industrial sectors, increasing production, deepening local manufacturing, and expanding exports,” said investment and foreign trade minister Mohamed Farid.

According to the minister, Egypt’s geographical location, infrastructure, transportation networks, ports and logistics system provide advantages for tire manufacturing and exports.

“These advantages support the ability of industrial projects to access regional and international markets, particularly those in Africa, the Middle East, and Europe,” he said.