By Oliver Hall
Egypt is planning to build the biggest car tyres factory in the Middle East at a cost of 600 million Egyptian pounds, according to news reports.
Its efforts to spur industrial exports as a way of buoying economic growth and providing jobs for its 77 million people, have been curbed by the global financial crisis and competition from Asian manufacturers.
Taher Salama, head of the state-owned Transport and Engineering Company, said: “Domestic tyre exports face big problems due to the entrance of Chinese producers in African markets, particularly the COMESA nations, at very low prices.”
The new factory will be able to produce half a million tyres annually, according to the report by MENA, the state news agency.
It will take two years to build and will be located in El-Amerya, west of the Mediterranean port city of Alexandria.
Egyptian, Arab and foreign investors will take part in the factory’s financing, the report said without naming specific investors. Trenco currently exports to Saudi Arabia and the Gulf states and plans to export to Sudan, it added.