Aeolus will build a plant in Egypt

Chinese Aeolus Tyres has announced that it intends to invest 2.7 billion yuan (400 million dollars) in the construction of a new plant in Egypt in order to expand its presence in international markets, increase profitability and strengthen its brand, according to Yicai.

The project will be implemented by a new subsidiary of Aeolus called Aeolus Tyre (Hainan) Co., which will create a joint venture in Egypt called Aeolus Egypt with companies Prometeon Tyre Egypt (PTG) and China Rubber International Co. Ltd., with shares of 1 and 0.7%, respectively.

The construction is planned to be completed within 20 months, and will utilize, among other things, the currently unused land on the territory of PTG's enterprise in Alexandria. The new plant will produce 1.5 million truck tires per year, as well as 30,000 tires for agricultural and other special equipment.

PTG and Aeolus are controlled by the Chinese company China National Tire & Rubber Co. (CNRC), whose representatives previously visited Egypt to discuss plans for expanding production in the country.

Aeolus currently does not have production facilities outside of China, and last year the company's export volumes totaled 3.4 billion yuan (500 million dollars), or 47% of its total turnover, with products being sold worldwide, including in North and South America, Europe, the Middle East, and the CIS.