Egypt close to signing $360M car tires factory in SCZONE with Chinese company
Updated 11/7/2024 12:19:00 PM
Arab Finance: The Egyptian government is close to signing an agreement with a Chinese firm to establish a car tires manufacturing factory in the Suez Canal Economic Zone (SCZONE), with initial investments worth $360 million, two sources told Asharq Business.
The anticipated project will be implemented in partnership with the Arab Organization for Industrialization (AOI) which will provide the land, while the Chinese firm will offer the investments needed for the project, the sources said.
The project aims to produce 6 million tons of tires annually in the first phase, with plans to reach 12 million tons annually, one source noted.
The Chinese side will hold a majority stake in the project, with 52% of the company’s capital, compared to 48% for the AOI, one source pointed out.
Production is expected to commence production at the end of 2025, he added.
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