Egypt signs agreement with China's Linglong to establish industrial complex with $2 billion investment
Cairo, Sept 3 (KUNA) -- Egypt’s Ministry of Industry signed a memorandum of understanding on Thursday with Chinese group Linglong, aiming 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 Khaled Hashem and Wang Lin, vice chairman of the board of directors of the Chinese group, in the presence of Egyptian Prime Minister Mostafa Madbouly.
According to the statement, Minister Hashem said the industrial complex will 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. Production will be directed to meet local market needs and to 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 supports increasing the local content, reducing reliance on imports, and opening avenues for increased production and exports, while strengthening Egypt’s position as a regional hub for automobile manufacturing and its components. (End) A.S.M. / M.A.A.
