ZC Rubber plans to build a plant in Egypt

Egyptian authorities are actively working to develop the country's tire industry by attracting Chinese investors, and followingSailun, Long March and Linglong ZC Rubber, China's largest tire manufacturer by sales volume, announced its decision to localize production in the country. A letter of intent to this effect was recently signed with the management of the Suez Canal Economic Zone (SCZone), the Egyptian Ministry of Investment and Foreign Trade reported. 

It is noted that the new plant will produce tires for passenger and commercial vehicles, with construction planned in three phases and total investment amounting to $500 million. It is expected that 95% of the products will be exported.

"Egypt has competitive advantages that enable us to become a regional hub for tire production and export, serving the markets of Africa, the Middle East, and Europe," said Minister Mohamed Farid.

According to him, investors are attracted by Egypt's strategically advantageous geographical location, infrastructure, and logistics capabilities that provide access to regional and international markets. The minister also noted that since the majority of tyres produced at the new plant will be exported, the project will boost Egypt's export potential and improve the competitiveness of locally manufactured goods. Furthermore, the introduction of advanced technologies and the enhancement of technical skills among Egyptian specialists are of great importance, he added.

The letter of intent was signed during the first official visit by Chinese President Xi Jinping to Egypt in 10 years.

Photo: ahram.org.eg