China’s Linglong Group（玲珑集团）signed a memorandum of understanding with Egypt’s Ministry of Industry on September 3 for a proposed integrated tire and automotive-components complex, with planned investment of approximately USD 2 billion. The project would supply Egypt’s domestic market and target exports to Europe, the US and Gulf countries, combining tire manufacturing with upstream materials production.
Egyptian Industry Minister Khaled Hashem and Linglong Group Vice Chairman Wang Lin signed the memorandum in the presence of Prime Minister Mostafa Madbouly. The proposed complex would manufacture tires for passenger cars, buses and equipment, alongside conveyor belts and production inputs including carbon black and steel cords. Egyptian officials said it was expected to create more than 5,000 jobs and support technology transfer and local skills development.
According to Shanghai Securities News, the proposed industrial park would cover approximately 3 million square meters, with Linglong Group bringing together subsidiaries, affiliated companies and partners. The memorandum is a non-binding framework document, and the project remains at the planning and assessment stage. Land approvals, environmental assessments, financing arrangements and partner discussions remain under consideration. The tire-related investment would be subject to subsequent disclosures by listed Shandong Linglong Tyre（玲珑轮胎）.
The agreement follows discussions in April over a potential site in Borg El Arab under Egypt’s private free-zone system. That earlier proposal envisaged exporting around 90% of output, particularly to the US and Gulf markets. Those details reflect the earlier discussions and should not be treated as finalized operating arrangements.
For Egypt, the project would support efforts to expand local automotive supply chains and reduce reliance on imported tires. Arab News reported that the country imports nearly 8 million tires annually at an estimated cost of USD 1.25 billion. Combining finished tires with materials such as carbon black and steel cords could increase local value added and create opportunities for suppliers.
For Linglong, the proposal would extend an overseas manufacturing network that already includes tire production in Thailand and Serbia. Its significance lies in the proposed integration of materials, manufacturing and distribution, potentially creating a broader industrial presence in a new market.
The project illustrates how Chinese manufacturers are exploring overseas production to serve local and export demand. However, the announcement does not establish tariff avoidance as its purpose or confirm preferential treatment for future exports. The next milestones are firm investment commitments, approvals and a construction schedule; these will determine whether the proposed complex becomes an operating manufacturing base.
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