Egypt to set up €1 billion tyre manufacturing plant in Suez Canal Economic Zone

Ahram Online , Wednesday 20 Sep 2023

Egypt's Main Development Company for the Suez Canal Economic Zone (SCZONE) signed a contract with Rolling Plus for chemical industries to build a tyre manufacturing plant for passenger cars and light and heavy vehicles with €1 billion ($1.07 billion) investments in Ain Sokhna, read an official statement on Wednesday.

Egypt s Prime Minister Mostafa Madbouly witnesses the signing of the contract to build tyre manufact
Egypt s Prime Minister Mostafa Madbouly witnesses the signing of the contract to build tyre manufacturing plant in SCZONE (Photo: page of Presidency of the Egyptian Council of Ministers on Facebook)


The Rolling Plus tire manufacturing factory will be located on 400,000 square metres.

The factory is expected to produce seven million tyres annually and create 1,000 direct and indirect jobs.

The factory is scheduled to be implemented in three phases. The first phase will witness the building of production lines for automotive tyres, with an annual capacity of 2.5 million units, 50 percent of which will be supplied to the local market.

The second phase will see the additional manufacturing of light vehicle tyres, producing 3.5 million tyres per year, of which 40 percent will be sold in the local market.

By the third phase, the annual production will rise to seven million tyres, and a production line will be added for manufacturing heavy vehicle tyres.

Prime Minister Mostafa Madbouly announced in August a new package of incentives for companies that commit to quickly localizing car production and other automotive components.

In June 2022, Madbouly launched the national strategy for localizing the automotive industry, which aims to establish Egypt as a main gateway for emerging vehicle markets in Africa.

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