Linglong Tire to invest in tyre production in Egypt

Linglong Tire is further advancing its international growth strategy with the formation of Linglong Tire Egypt Co Ltd, as part of the Shandong Linglong Tyre Co., Ltd. Overseas (Egypt) Investment and Construction Project.

The aim of this ambitious development is to strengthen international competitiveness, expand the company’s presence in Europe, the Middle East and Africa, and better meet the needs of regional customers in the future.

The estimated total investment is USD 270 million. The factory will be built in Borg El Arab, 45 kilometers south of Alexandria, on a total area of approximately 251,460 m². The planned construction period is two years and, in addition to the construction of the factory, the site will also include civil buildings, infrastructure work, greening and related support work.

After completion, a total of approximately six million car tyres per year will be manufactured, with expected sales of approximately USD 175 million and a projected net profit of approximately USD 35 million.

The amount of the investment is designed in such a way that the local demand in Egypt, as well as in the core markets in Europe, the Middle East and Africa can be met, and all customer needs can be satisfied. The automotive industry in Egypt and the neighboring countries is developing steadily and has been growing for years, which makes the current location decision even more interesting.

Egypt is located at the interface of Asia, Africa and Europe with direct proximity to the Suez Canal, one of the most important trade routes. The geographical location with the local ports and the existing logistics network makes it possible to redesign raw material and goods flows, effectively reduce logistics costs and optimise supply chains.

In the global Linglong Tire production network, the new project fits perfectly with the existing production facilities in China, Thailand and Europe and will provide synergy effects after completion of the factory in Egypt and will make Linglong Tire more independent and flexible worldwide.

The project additionally strengthens Linglong’s brand presence in the region, increasing competitiveness and thus contributing to the further development of its globalisation strategy, which includes smart factories, leading R&D departments, environmentally friendly and sustainable production, and advanced services.

At the moment the investment is still subject to approvals and reviews by the relevant authorities of the People’s Republic of China as well as by the relevant Egyptian authorities.