The proposed project would cover around 600,000 square metres and be developed in three phases, with about 95 percent of its production earmarked for export, according to the ministry.
The complex would include tyre manufacturing lines and related industrial, service, and logistics activities, with the planned facility expected to produce car and truck tyres.
Egyptian Minister of Investment and Foreign Trade Mohamed Farid said the proposed project reflects Egypt’s efforts to attract foreign direct investment to high-value industries, increase production, deepen local manufacturing, and expand exports.
“Egypt has competitive advantages that qualify it to become a regional hub for tyre manufacturing and exports, serving markets in Africa, the Middle East, and Europe,” Farid said.
He cited Egypt’s strategic geographical location, infrastructure, transport networks, ports, and logistics capabilities as factors supporting industrial projects seeking access to regional and international markets.
Farid noted that the planned export ratio of around 95 percent highlights the project’s export-oriented nature and could help increase Egypt’s export capacity and the competitiveness of locally manufactured products.
He also stressed the importance of adopting modern tyre manufacturing technologies and transferring expertise to Egyptian workers to strengthen production capabilities and technical skills.
The government is also working to provide suitable industrial land, simplify investment procedures, and address challenges facing investors to speed up feasibility studies and move projects toward implementation, Farid said.
SCZone Chairman Mostafa Sheikhoun said the proposed project supports the authority’s strategy to attract specialized industrial investments, expand local manufacturing, and develop high-value industries in Egypt.
He said the Sokhna Industrial Zone offers integrated infrastructure and logistics capabilities suitable for large-scale and export-oriented projects, while providing direct access to international markets and global trade routes.
Sheikhoun said cooperation with ZC Rubber also reflects the zone’s growing ability to attract major Chinese industrial companies.
The authority will support the company during the project’s assessment, and as it completes its technical and investment requirements, he added.
Three-phase investment
ZC Rubber Chairman and General Manager Shen Jinrong said the company plans to implement the proposed project in Egypt in three phases, with estimated investments of around $500 million.
He said around 95 percent of the planned output of car and truck tyres would be exported.
The company aims to leverage the Sokhna Industrial Zone’s logistics infrastructure and location to expand into regional and international markets, particularly in the Middle East, Africa, and Europe, Shen said.
The letter of intent was signed by SCZone Deputy Chairman for the Southern Zone Captain Ahmed Gamal and Shen Jinrong on behalf of ZC Rubber.
The signing was witnessed by Farid and Sheikhoun, along with SCZone officials, ZC Rubber representatives, and officials from the Egyptian Commercial Service.
Building a local tyre industry
The proposed investment comes as Egypt seeks to expand local manufacturing and develop domestic value chains in industrial sectors.
Sheikhoun said the project would support the development of value chains linked to the tyre industry and help deepen local manufacturing by leveraging the industrial and logistics capabilities of the Sokhna Industrial Zone.
Farid similarly stressed the importance of using advanced technology and localizing modern expertise in the tyre sector, saying this would help raise industrial efficiency and improve the competitiveness of Egyptian production.
Founded in 1958 and headquartered in Hangzhou, China, ZC Rubber is a major tyre manufacturer.
The letter of intent does not constitute a final investment agreement. It provides an initial framework for studying the proposed project and assessing its technical and investment requirements.
The two sides will continue discussions to complete the necessary studies, determine the appropriate site, and fulfil the required procedures before moving to subsequent stages of the project.
This comes as Chinese President Xi Jinping is on an official visit to Egypt, the first in a decade, which aims to strengthen the two countries’ comprehensive strategic partnership and expand cooperation in political, economic, and development fields, according to the Egyptian presidency.
The visit comes as the two countries mark 70 years of diplomatic relations.
Egypt and China established diplomatic ties in 1956, with Egypt becoming the first Arab and African country to recognize the People’s Republic of China.
Short link: