{"id":654867,"date":"2024-11-10T00:00:00","date_gmt":"2024-11-10T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/11\/10\/egyptian-chinese-jv-to-set-up-usd-360-mn-tire-factory-in-the-sczone\/"},"modified":"2024-11-10T00:00:00","modified_gmt":"2024-11-10T00:00:00","slug":"egyptian-chinese-jv-to-set-up-usd-360-mn-tire-factory-in-the-sczone","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/11\/10\/egyptian-chinese-jv-to-set-up-usd-360-mn-tire-factory-in-the-sczone\/","title":{"rendered":"Egyptian-Chinese JV to set up USD 360 mn tire factory in the SCZone"},"content":{"rendered":"

Another Chinese company eyes our auto sector:<\/strong> 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<\/a> reports, citing what it says are two informed anonymous sources.<\/p>\n

Who will do what? <\/strong>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.<\/p>\n

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

This isn\u2019t the first time we heard about a Chinese company interested in local tire<\/strong> production: <\/strong>The Military Production Authority signed a contract with China\u2019s Poly Group in December 2019<\/a> to jointly establish a tire production facility with an annual capacity of 3 mn tires, but we haven\u2019t heard much on the project since then. We also heard that the China National Tire & Rubber Corporation was in talks<\/a> with the military production and public enterprise ministers all the way back in 2018 to discuss setting up a tire factory, but likewise didn\u2019t hear anything more about the project later down the line.<\/p>\n

There\u2019s also other sizable tire factories in the pipeline:<\/strong> Rolling Plus Chemical Industries signed a contract last year to establish a EUR 1 bn tire factory<\/a> to produce some 7 mn tires. The government is also reportedly working with the private sector to revive and develop<\/a> state-owned tire manufacturer Trenco with estimated investments of USD 160 mn.<\/p>\n

**Read more about our fledgling domestic tire industry<\/strong> \u2014 and the challenges it\u2019s facing \u2014 in this Inside Industry two-parter we published last year (Part I<\/a> | Part II<\/a>).<\/p>\n

IN OTHER MANUFACTURING NEWS-<\/p>\n