China’s Shandong Linglong Tire Co. has submitted a proposal to the Egyptian government to establish an integrated industrial complex for the production of automotive tires under the private free zone system, with total investments estimated at approximately $2 billion.

Mohamed Farid, Minister of Investment and Foreign Trade, held discussions with representatives of Shandong Linglong regarding the potential implementation of a comprehensive industrial project dedicated to manufacturing tires for passenger vehicles and heavy-duty trucks.

 The project is planned in partnership with Fit & Fix (Nile Trade and Supplies Company) within a private free zone framework.

According to the proposal, the project will also include supporting industries such as rubber and carbon black production, covering an area of up to 3 million square meters in Borg El Arab. Around 90% of the output is intended for export to international markets, particularly the United States and Gulf countries.

The minister emphasized that the Egyptian government prioritizes attracting investments that contribute to localizing advanced technologies, strengthening industrial and production capacities, and enhancing the value of Egyptian exports, particularly in the automotive sector and its supporting industries, including tire manufacturing. He noted that these efforts are being implemented in coordination with relevant ministries and authorities.

Based on the company’s presentation, total project investments are expected to reach approximately $2 billion over the development period, following the completion of all required licenses and regulatory approvals.

Farid added that Egypt’s investment frameworks, including free zone systems, are designed to streamline procedures and serve as an effective mechanism for attracting foreign direct investment, reinforcing Egypt’s position as a competitive destination for high-value-added investments.

He further explained that the private free zone system offers a range of incentives and facilitation measures that support companies in accessing global markets, noting that the project aligns with the state’s strategy to expand non-oil exports.

For her part, Sophie Li, General Manager of Projects and Investments at Shandong Linglong, stated that the Egyptian market possesses strong fundamentals that position it as a suitable regional hub for manufacturing and export, supported by its strategic geographic location and extensive network of trade agreements.

She added that the company aims to establish a fully integrated industrial complex using the latest technological systems in partnership with Nile Trade and Projects Company, highlighting the company’s intention to transfer technology and strengthen local industrial capabilities.

Li concluded by noting that the company plans to continue consultations with relevant authorities to secure the necessary approvals and move forward with project implementation.