Linglong’s $2 Billion Tire Complex in Egypt Eyes Global Export Markets
China’s Linglong Group has signed a memorandum of understanding with Egypt’s Ministry of Industry to develop an integrated tire manufacturing complex, with planned investments of approximately $2 billion expected to create more than 5,000 jobs while supplying both domestic and international markets.
According to Egypt’s Cabinet, the project will produce tires for passenger cars, buses, and heavy equipment, along with conveyor belts. The complex will also include supporting industries and production inputs such as carbon black and steel cords.
The initiative comes as Egypt works to expand domestic passenger-car tire production and reduce its dependence on imports. The country currently imports nearly 8 million tires annually at an estimated cost of $1.25 billion, with domestic production historically concentrated on tires for trucks, buses, and two- and three-wheeled vehicles rather than passenger cars.
The project aims to deepen local manufacturing capabilities and establish an integrated value chain for the tire industry, while also supporting technology transfer and the development of local expertise. “The Minister of Industry said the complex will include a number of supporting industries and production inputs, including carbon black and steel cords, contributing to deeper local manufacturing and the development of an integrated value chain,” the Cabinet said.
The memorandum was signed by Egypt’s Industry Minister Khaled Hashem and Wang Lin, vice chairman of Linglong Group, in the presence of Prime Minister Mostafa Madbouly. Hashem said the agreement reflects broader efforts to strengthen industrial and investment cooperation between Egypt and China.
He added that the initiative would support technology and knowledge transfer, build local skills and capabilities, and strengthen connections between industries involved in tire manufacturing. Production is expected to serve both domestic demand and export markets in Europe and the US, increasing local added value while boosting the competitiveness of Egyptian products and expanding their access to global markets.
Hashem said the project aligns with the Ministry of Industry’s broader strategy to expand the localization of complementary and supporting industries, deepen local manufacturing, and complete supply chains, particularly within the automotive sector and related industries. He emphasized that the initiative is also designed to increase local content, reduce reliance on imports, create opportunities to boost production and exports, and strengthen Egypt’s position as a regional hub for the automotive industry and its components.
Egypt and Linglong first discussed plans for the project in April, when the Chinese company explored establishing an integrated tire manufacturing complex under Egypt’s private free-zone system, according to the Ministry of Investment and Foreign Trade. That earlier proposal envisioned a complex covering up to 3 million square meters in Borg El Arab, incorporating supporting industries such as rubber and carbon black production. Under that plan, about 90 percent of production was expected to be directed toward exports, particularly to the US and Gulf markets. The ministry said the proposal was being explored in cooperation with Egyptian company Nile Trading and Supplies, which operates under the Fit & Fix brand. During the April discussions, Linglong indicated the project would support technology transfer and help strengthen Egypt’s local industrial capabilities.
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