Good afternoon all you wonderful people, and Ramadan kareem to those celebrating. We have another busy issue for you today, with all the latest on the revival of a planned EUR 1 bn tire factory, the end of the Skype era, and a deep dive into Elsewedy Cables.

THE BIG STORY TODAY

Organi Group acquires 50% of Rolling Plus in bid to restart EUR 1 bn tire factory project: Organi Group has acquired 50% of Rolling Plus Chemical Industries in partnership with Concrete Plus — which previously held a 70% stake in the company — to advance a EUR 1 bn tire factory project in the Suez Canal Economic Zone, an unnamed Rolling Plus official told Asharq Business.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

The why: Rolling Plus — reportedly a joint project between Concrete Plus and Gulf investors — signed a contract in September 2023 to establish a EUR 1 bn tire factory in the Ain Sokhna industrial zone to produce some 7 mn tires, but limited progress on implementation in the years since prompted the company to reach an agreement with Organi Group earlier this year to contribute half of Rolling Plus’ capital, according to the official.

What we know: The project is expected to be rolled out in three phases, beginning with a EUR 400-450 mn initial investment that will see the factory produce 3 mn tires annually. The second phase is expected to expand production to 4 mn tires, while the third will push output to 8 mn, adding heavy-duty and bus tires. Half of the factory’s production has been earmarked for export.

THE BIG STORY ABROAD

Israel has blocked the entry of all humanitarian aid into Gaza after Hamas rejected a revised proposal to extend the ceasefire, calling it “manipulation,” the Financial Times reports. The initial 42-day ceasefire — mediated by Egypt, the US, and Qatar — expired on Sunday, with both sides accusing each other of violations.

The breakdown: Israeli Prime Minister Benjamin Netanyahu announced that Israel had accepted a US-drafted proposal to extend the ceasefire by six weeks, during which Hamas would release half of its remaining hostages while negotiations for a permanent ceasefire took place. However, Hamas spokesperson Mahmoud Mardawi rejected the plan, accusing Israel of refusing to honor previous agreements. Mardawi insisted on a full Israeli withdrawal and a commitment to the reconstruction of Gaza before further hostage releases could take place in the second phase.

In response, the Israeli PM’s office issued a statement declaring that “all entry of goods and supplies into the Gaza Strip will cease,” emphasizing that Israel will not permit a ceasefire without the release of hostages. (Reuters I CNN I BBC I AP)

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • EBRD trims Egypt’s growth forecast: The European Bank for Reconstruction and Development (EBRD) has lowered Egypt’s growth forecast for 2025 to 4.2%, down 0.3 percentage points from its previous estimates in September.
  • Prime Minister Moustafa Madbouly spent last Thursday inaugurating a handful of factories by local and international companies in SCZone’s Sokhna Industrial Zone.
  • Egypt’s external debt obligations for 2025 — and how they will be covered — have been cause for speculation: Egypt’s external obligations are estimated to be around USD 55 bn between 2025 and the end of 2026 — with USD 33.2 bn in 2025 alone.

enterprise

*** It’s Inside Industry day — your weekly briefing of all things industrial in Egypt. Inside Industry focuses each Sunday on what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning to product distribution, through to land allocation to industrial processes, supply chain management, labor, automation and technology, inputs and exports, regulation and policy.

In today’s issue: We sat down with Amr El Sawaf, General Manager of Elsewedy Cables (LinkedIn), to explore the company’s journey, market leadership, and how it’s navigating an increasingly competitive global industry.

☀️ TOMORROW’S WEATHER- The wave of warmer weather will still be lingering in the capital tomorrow, with a high of 24°C and a chilly low of 12°C, according to our favorite weather app.

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