Recently, the Egyptian Ministry of Industry held working talks with a delegation from China National Chemical Rubber Co., Ltd. to conduct in-depth docking on cooperation matters such as expanding industrial investment by Chinese companies in Egypt, building a modern tire production base, and promoting technological upgrading.
According to the results of the negotiations between the two parties, the Chinese company will invest an additional US$550 million to develop a new tire manufacturing project in Alexandria Province, Egypt, to help Egypt improve its automotive supporting industry chain and expand local industrial production capacity and export scale.
Egyptian Minister of Industry Khalid Hashem chaired the meeting, and Wang Jianjun, Chairman of China National Chemical Rubber Co., Ltd., attended the meeting.
Sun Ding, deputy general manager, Omar Mukhna, chairman of its wholly-owned subsidiary Badian Egypt Tire Company, and relevant persons in charge of the Egyptian Ministry of Industry attended the discussion.
1. A new US$550 million project was launched, empowering the expansion and upgrading of the Egyptian tire industry.
This major investment project was jointly implemented by Chinese companies and Biotech Egypt, with a total investment of US$550 million. It is a key foreign investment project in Egypt’s tire manufacturing field in recent years.
According to the construction plan, the new project is located in the Amelia region of Alexandria Province, close to the company’s existing production plant. The core construction content includes the construction of a new intelligent production workshop, the intelligent transformation of existing production lines, and the iterative upgrade of process technology.
The project is expected to be officially put into operation in early 2028. After it is put into operation, it will increase the annual production capacity of 1.5 million tires and directly create 1,600 jobs.
The project focuses on heavy transport vehicle tires, engineering machinery tires, agricultural tractor tires and other products, accurately meeting the development needs of Egypt’s infrastructure, logistics and modern agriculture.
At the same time, the project will simultaneously implement China’s advanced manufacturing technology, promote the localization transfer of core production technology, and effectively enhance the quality of Egypt’s local tire products and export competitiveness in the international market.
2. The Egyptian government provides all-round guarantees and optimizes the foreign investment business environment.
During the talks, Chinese companies put forward demands on key issues such as industrial land approval, production license processing, introduction of foreign technical experts, supervision of imported non-standard products, and trade anti-dumping and countervailing protections based on project construction and long-term operational needs.
The Egyptian Ministry of Industry has made it clear that it will make every effort to ensure the smooth progress of this key foreign investment project.
Khalid Hashim said that the Egyptian government will continue to simplify the industrial approval process, optimize the foreign investment business environment, proactively coordinate and solve various problems encountered in the entire process of project construction, production, and operation, and provide comprehensive policy and government support for the implementation of the project.
In view of the long-term development of the industry, the Egyptian Ministry of Industry has clearly encouraged Chinese companies to extend their industrial chain layout and increase investment in the field of passenger car tires.
It is reported that the automobile industry is a strategic pillar industry that Egypt focuses on cultivating. Improving the passenger car tire supporting system can effectively reduce Egypt’s dependence on imported automobile parts, improve the localized supporting rate of the automobile industry, fill in the shortcomings of the industrial chain, and comprehensively enhance the overall competitiveness of the Egyptian automobile industry.
3. Anchor the direction of green manufacturing and promote industrial localization to improve quality and efficiency.
This meeting focused on the two core issues of green industrial development and localized supporting improvements.
The Egyptian Ministry of Industry fully recognized the practical achievements of Chinese enterprises in green production fields such as energy conservation and consumption reduction, intensive utilization of water resources, and sewage recycling treatment, and put forward clear requirements for the construction of new projects.
Egypt proposed that new factories need to actively introduce renewable energy such as solar energy, fully implement green production models, and reduce industrial production energy consumption and carbon emissions.
At the same time, relying on the implementation of Egypt’s “Local Products Preferential Procurement Law”, expanding the application scenarios of local industrial products through government procurement, market guidance and other methods will force enterprises to continue to improve the localization rate of products and promote the localization, greenness and high-quality development of Egypt’s industry.
4. Chinese companies are deeply exploring the Egyptian market and increasing long-term strategic cooperation.
Chairman Wang Jianjun said during the meeting that the company is optimistic about Egypt’s economic development resilience and opening-up prospects in the long term, and highly recognizes Egypt’s continued optimization of the business environment and the government’s efficient measures to serve foreign-invested enterprises.
This new investment of US$550 million is a key strategic move for the company to deeply explore the Egyptian market and improve its industrial layout in North Africa.
In the future, the company will continue to enrich its product matrix based on its existing heavy-duty tire production capacity, steadily expand its passenger car tire production business, and accurately match Egypt’s domestic consumption upgrade needs. At the same time, relying on Egypt’s location advantages, it will expand the scope of tire product exports and help Egypt build a North African tire manufacturing and export hub.
5. The project has released multiple benefits, and the potential of China-Egypt production capacity cooperation has continued to be released.
The implementation of the China-Egypt tire industry cooperation project demonstrates the long-term confidence of foreign investors in the development of Egypt’s manufacturing industry, and also marks that China-Egypt production capacity cooperation is moving into a deeper and broader field.
On the one hand, large amounts of foreign investment in the manufacturing industry continue to flow in, effectively activating Egypt’s industrial development momentum and promoting the transformation and upgrading of traditional manufacturing; on the other hand, the project accurately aligns with Egypt’s national automobile industry development strategy, helping Egypt build a complete industrial ecosystem of “complete vehicle manufacturing + parts and components supporting” and accelerating the localization process of the automobile industry.
At the same time, the project takes green manufacturing and low-carbon development as core construction standards, which is in line with the green transformation and development direction of Egypt’s industry and sets a green development benchmark for Egypt’s foreign-invested industrial projects.
As China-Egypt economic and trade cooperation continues to deepen, fields such as automobile accessories, rubber manufacturing, new energy, and green industry will become the core growth points of production capacity cooperation between the two parties, continue to help Egypt’s industrialization upgrade, and consolidate the foundation of China-Egypt pragmatic cooperation.
