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Linglong Signs $2 Billion Tire Complex Deal with Egypt

Prime Highlights

  • Linglong Group signs a $2 billion MoU with Egypt to build a tire complex creating over 5,000 jobs and supplying local and global markets.
  • The complex will produce car, bus and equipment tires plus conveyor belts, along with supporting industries like carbon black and steel cord.

Key Facts

  • Egypt imports nearly 8 million tires yearly, costing about $1.25 billion, which the project aims to reduce.
  • Egypt and Linglong held earlier talks in April over a similar complex proposed for Borg El Arab.

Background

China’s Linglong Group has signed a memorandum of understanding with Egypt’s Ministry of Industry to build an integrated tire manufacturing complex worth about $2 billion. The project will create more than 5,000 jobs and supply both domestic and international markets.

The complex will produce tires for passenger cars, buses and equipment, along with conveyor belts, according to the Egyptian Cabinet. It will also include supporting industries such as carbon black and steel cord production.

Egypt currently imports nearly 8 million tires a year at a cost of around $1.25 billion, as domestic output has mainly covered trucks, buses and two- and three-wheeled vehicles. The new complex aims to expand local passenger-car tire production and cut import reliance.

Industry Minister Khaled Hashem and Linglong Vice Chairman Wang Lin signed the deal in the presence of Prime Minister Mostafa Madbouly. Hashem said the agreement strengthens industrial and investment ties between Egypt and China, supports technology transfer, and builds local skills.

He added that production will serve domestic demand as well as European and US markets, boosting the competitiveness of Egyptian goods globally. Hashem said the project fits into a wider strategy to deepen local manufacturing and strengthen Egypt’s automotive supply chain.

The two sides had earlier discussed a similar project in April, when Linglong explored a complex in Borg El Arab covering up to 3 million square metres, with about 90 percent of output aimed at exports.