The localization of the auto industry continues to rank high on the gov’t’s agenda: The Industry Ministry revealed new information about the government’s plans to localize automotive feeder industries during yesterday’s ministerial group for industrial development meeting, according to a ministry statement. The projects under discussion included a raft of tire manufacturing projects as well as a new initiative to produce EV batteries.

Welcome to tire city: The USD 360 mn joint tire-manufacturing project between the Arab Organization for Industrialization (AOI) and an unnamed Chinese company is set to be an entire tire manufacturing city in a freezone in Ain Sokhna, with the project to include three tire factories, a facility for manufacturing tire production equipment, service and maintenance centers, a steel wire plant for tire reinforcement, a white carbon production facility, and a research and training center, according to the statement. The first tire factory will kick off operations within a year.

And that’s not all on the tire front: State-owned tire manufacturer Trenco’s Alexandria-based factory — which manufactures Nisr brand tires — is set to be developed in partnership with unnamed European companies, with production targeted to start within two years. A new Trenco tire factory is also set to be established in collaboration with a Chinese company in Alexandria’s Amreya, the statement noted.

ICYMI: Local sources reported back in August that the government was looking to team up with the private sector to revive and develop state-owned tire manufacturer Trenco, with estimated investments of USD 160 mn. Trenco — which previously covered 30% of the internal market — shut down operations in 2022.

There are also plans in the works to manufacture electric bus batteries, which will support the production of El Nasr Automotive’s electric microbuses and expand the EV supply chain.

EgyptAlum’s Nagaa Hammadi aluminum plant set to undergo expansion in 2025: The government has approved a four-year plan starting next year to expand the production capacity of state-owned aluminum producer EgyptAlum’s Nagaa Hammadi complex, with an eye toward fulfilling local demand and reducing imports of aluminum.

Remember: Norwegian renewables player Scatec is set to build a USD 1.1 bn solar plant to power the ramping up of production at the complex with an extra 2-GW worth of power.

Tags: