Minister of Investment and Foreign Trade Mohamed Farid and Suez Canal Economic Zone (SCZONE) Chairperson Mostafa Sheikhoun have witnessed the signing of a letter of intent between SCZONE and Zhongce Rubber Group (ZC Rubber) to explore the establishment of an integrated tyre manufacturing complex in the Sokhna Industrial Zone. The proposed project would involve estimated investments of around $500m and initially cover approximately 600,000 square metres, with around 95% of production targeted for export. The project would comprise integrated tyre manufacturing lines, along with related industrial, service and logistics activities. It would be implemented in three phases, supporting increased production and access to regional and international markets. Farid said the signing of the letter of intent with ZC Rubber represents an important step towards exploring the establishment of an integrated industrial project in the tyre sector. He said the project reflects the state’s efforts to attract foreign direct investment into value-added industrial sectors, increase production, deepen local manufacturing and expand exports. Farid said Egypt has a comprehensive set of competitive advantages that qualify it to become a regional hub for tyre manufacturing and exports, citing its strategic geographical location, infrastructure, transport networks, ports and logistics system. These advantages, he said, support industrial projects’ access to regional and international markets, particularly in Africa, the Middle East and Europe. He said the target of exporting around 95% of the project’s production underscores its export-oriented nature and provides an opportunity to capitalise on Egypt’s access to foreign markets, increase export capacity and enhance the competitiveness of Egyptian products. The investment minister stressed the importance of using the latest technologies in tyre manufacturing and localising modern expertise and technology. This would help develop the production capabilities and technical skills of Egyptian workers, improve industrial efficiency and strengthen the sector’s competitiveness in global markets. Farid added that the government is committed to providing suitable industrial land for investment projects and offering alternatives that meet each project’s specific requirements. It also seeks to facilitate procedures and address challenges investors may face, helping accelerate the completion of studies and the transition to implementation. For his part, Sheikhoun said the signing of the letter of intent with ZC Rubber represents an important step towards exploring the establishment of a specialised industrial project in the tyre sector. He said the proposed project is aligned with SCZONE’s strategy to attract high-quality industrial investment, deepen local manufacturing, localise value-added industries and capitalise on the competitive advantages of the Suez Canal Economic Zone, particularly the Sokhna Industrial Zone. Sheikhoun added that cooperation with ZC Rubber reflects SCZONE’s ability to attract major industrial companies, particularly amid growing Chinese investment in the zone. He stressed SCZONE’s commitment to supporting investors throughout the project assessment process and helping them meet technical and investment requirements, contributing to an appropriate environment for implementing industrial projects in accordance with applicable laws and procedures. Sheikhoun said the selection of the Sokhna Industrial Zone as the proposed location reflects the area’s integrated advantages in supporting major industries and providing direct access to markets and global trade hubs, enhancing the prospects for industrial projects to succeed and expand. The SCZONE chairperson said the proposed project would support efforts to deepen local manufacturing, develop value chains linked to the tyre industry and capitalise on the industrial and logistics advantages of the Sokhna Industrial Zone. For his part, ZC Rubber Chairperson and General Manager Shen Jinrong said the group plans to implement the new project in Egypt in three phases, with estimated investments of around $500m. He said around 95% of planned production of passenger car and truck tyres would be exported. Shen said the project aims to benefit from the advanced logistics capabilities and infrastructure available in the Sokhna Industrial Zone, supporting the group’s plans to expand into regional and international markets, particularly in the Middle East, Africa and Europe. Founded in 1958 and headquartered in Hangzhou, China, ZC Rubber is one of the world’s major tyre manufacturers. The letter of intent provides an initial framework for studying the project and assessing its technical and investment requirements. The two sides will continue coordinating in the coming period to complete the necessary studies, determine a suitable location and fulfil the required procedures, paving the way for the project to move to subsequent stages.The post China’s ZC Rubber plans $500m tyre manufacturing complex in Sokhna first appeared on Dailynewsegypt.
