SCZone Signs Contract to Establish Tire Factory in Egypt worth €1 Billion

The investment arm of the Suez Canal Economic Zone (SCZone) on Wednesday signed a contract with the Egyptian company “Rolling Plus”for chemical industries to establish a tire factory with investments of €1 billion in the Sokhna Industrial Zone.

The Egyptian Prime Minister said in a statement that the factory will be over an area of 400,000 square metres and will be in three stages.

The statement added that the factory will produce passenger car tires and light and heavy transport vehicles and that the production capacity will reach 7 million tires per year when the project is fully operational.

The first phase will see the implementation of the plant construction works and production lines for automotive tires at a cost of €400 to €450 million and a production capacity of 2.5 million tires per year.

The second phase will include the production of light transport tires with a capacity of 3.5 million tires per year, and the production capacity in the third phase will increase to seven million tires after the addition of heavy transport tires.

The statement quoted Walid Gamal el Din, head of the Suez Canal Economic Zone, as saying that the importance of the project "has in the localisation of the tire industry locally, especially after the presence of a Finnish technical partner to provide all the technical advice for the project designs."