Egypt to Support Tyre Exports With New Plant

Egypt is planning to establish a new passenger car tyre factory at a cost of 600 million Egyptian pounds. The state news agency MENA reports the plant will be built in El-Amerya, west of Alexandria, and will be ready to start production in two years. According to MENA, the factory’s annual capacity will be one and a half million units.

It is hoped the new plant will assist in the fight against international competition in export markets. “Domestic tyre exports face big problems due to the entrance of Chinese producers in African markets, particularly the COMESA (Common Market for Eastern and Southern Africa) nations, at very low prices,” stated Taher Salama, head of the state-owned Transport and Engineering Company (Trenco).

Egyptian, Arab and international investors will contribute to the factory’s financing, the report noted, however no specific investors were named. The reported added that Trenco currently exports to Saudi Arabia and the Gulf states and plans to export to Sudan are in place.