Another new car tyre factory in Egypt?

On 29 March, the Arab Organization for Industrialization strengthened its international partnership with “major Chinese companies”. Major General, Engineer Mokhtar Abdel Latif, Chairman of the Arab Organization for Industrialization, said followed President Abdel Fattah El-Sisi directive to “strengthen partnerships with international expertise, increase local manufacturing rates, localize modern technology, increase added value, and open new areas for investment, in light of Egypt’s vision of sustainable development 2030.”

The news centres on the signing of a cooperation agreement between Arab Industrialization, and the Corporation China Railway 16th Bureau Group Co., Ltd. International Construction Company (CRCC16 GROUP). Within that, participation in “the implementation of several industrial projects by taking advantage of the advanced manufacturing capabilities of the Arab Organization for Industrialization, including the car tyre factory…” is mentioned.

Whether the agreement refers to the construction of a new tyre factory or rather the utilisation of existing tyre manufacturing capacity in Egypt, such as the Pyramids factory, is less clear. Sources close to the tyre business in the region cast doubt on the likelihood that the latest reports relate to any new investment or that such investment would be completed anytime soon, telling Tyres & Accessories that such plans have been discussed for a decade.

However, the Arab Organisation for Industrialisation (AOI) signed a contract with Hill International to manage an AOI factory for “vehicle tyres of all kinds, including cars, buses, agricultural tractors, and heavy equipment, under the slogan ‘made in Egypt’”.

In 2021, AOI said it planned to build two tyre production factories in partnership with the Black Donuts consultancy.

Additional news sources suggest that the 2021 memorandum of understanding aimed to build a car, light truck, truck and bus tyre factory in Ain Sukhna on the Suez Canal as well as an off-highway tyre factory Al-Amiriya, Alexandria.