Egypt signs agreement with Chinese 'Linglong' group to establish industrial complex with $2 billion investment

Egypt’s Ministry of Industry signed a memorandum of understanding on Thursday with China’s Linglong Group to establish an integrated industrial complex for the production of car and bus tires, equipment, and conveyor belts, with expected investments of around $2 billion.

The Egyptian Cabinet said in a statement that the memorandum was signed by Egyptian Minister of Industry Eng. Khaled Hashem and Wang Lin, vice chairman of the board of directors of the Chinese group, in the presence of Egyptian Prime Minister Dr. Mostafa Madbouly.

According to the statement, Hashem said the industrial complex would include a number of supporting industries and production inputs, such as carbon black and steel wire, contributing to deepening local manufacturing and building an integrated value chain.

He added that the expected investments in the industrial complex amount to around $2 billion, and the project is targeted to create more than 5,000 jobs.

He clarified that this comes alongside supporting technology and expertise transfer, developing local capacities and skills, and enhancing integration among various industries related to tire manufacturing. The complex’s production will be directed to meet local market needs and export to European and American markets, thereby boosting local value-added, supporting the competitiveness of Egyptian products, and enhancing their access to global markets.

He noted that the project aligns with the Ministry of Industry’s strategy to expand the localization of complementary and supporting industries, deepen local manufacturing, and complete supply chains, particularly in the automotive sector and related industries. This aims to support an increase in the local content, reduce reliance on imports, and open the door to increased production and exports, while strengthening Egypt’s position as a regional hub for automobile manufacturing and its components.