Another Chinese company eyes our auto sector: An unnamed Chinese company is looking to set up a USD 360 mn tire factory in the Suez Canal Economic Zone (SCZone) in partnership with the state-owned Arab Organization for Industrialization (AOI), Asharq Business reports, citing what it says are two informed anonymous sources.

Who will do what? The Chinese company will own 52% stake of the JV and will be responsible for securing financing for the project, while AOI will provide the land for the factory and will own the remaining stake.

The project is expected to begin production by the end of 2025, and will produce some 6 mn tires annually in its first phase, with plans to increase production to 12 mn tires in the future.

This isn’t the first time we heard about a Chinese company interested in local tire production: The Military Production Authority signed a contract with China’s Poly Group in December 2019 to jointly establish a tire production facility with an annual capacity of 3 mn tires, but we haven’t heard much on the project since then. We also heard that the China National Tire & Rubber Corporation was in talks with the military production and public enterprise ministers all the way back in 2018 to discuss setting up a tire factory, but likewise didn’t hear anything more about the project later down the line.

There’s also other sizable tire factories in the pipeline: Rolling Plus Chemical Industries signed a contract last year to establish a EUR 1 bn tire factory to produce some 7 mn tires. The government is also reportedly working with the private sector to revive and develop state-owned tire manufacturer Trenco with estimated investments of USD 160 mn.

**Read more about our fledgling domestic tire industry — and the challenges it’s facing — in this Inside Industry two-parter we published last year (Part I | Part II).

IN OTHER MANUFACTURING NEWS-

  • Austrian wood panels manufacturer Kronospan wants to partner with Nag Hamady Fiberboard Company to set up a 150k sqm production line in the Egyptian company’s existing factory to produce MDF, according to a statement by the Industry Ministry. The statement also confirmed that the company’s plans to set up a USD 50 mn wood panel factory to produce chipboard, MDF, and floorboards, among other products announced in 2023 is still in the study phase.
  • Egyptian food giant Edita signed a toll manufacturing agreement with Misr Food Additives, according to a disclosure (pdf). The agreement will enable Edita to expand their offerings in the biscuit sector, specifically for their flagship brand Oniro.
  • Oriental Weavers and Orascom’s Gemini Enterprises launched an entrepreneurial initiative titled Weavers of Tomorrow. The program will build an integrated business ecosystem to support youth and startup founders, aimed at advancing the textile industry, according to a statement.
  • Leading tissue maker eyes expansion: Facial tissues manufacturer Fine HygienicHolding is set to inaugurate new upgrades and expansions at its Easy Care factory in mid-November, Al Mal writes, citing CEO Mohamed El Damardash. The facility has added three production lines since Fine acquired Easy Care in April 2023.
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