Egypt to build biggest car tyre factory in MEA

Reuters reported that Egypt is planning to build the biggest car tyre factory in the Middle East at a cost of EGP 600 million.

As per report, Egypt has tried to spur industrial exports as a way of buoying economic growth and providing jobs for its 77 million people, but the global financial crisis and competition from Asian manufacturers have curbed some of its efforts.

Mr Taher Salama head of the state owned Transport and Engineering Company said that "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 report said that the new factory will be able to produce 1.5 million tyres annually. It will take two years to build and will be located in El-Amerya, west of the Mediterranean port city of Alexandria.

It added that Egyptian, Arab and foreign investors will take part in the factory's financing. Trenco currently exports to Saudi Arabia and the Gulf States and plans to export to Sudan.

(Sourced from http://www.steelguru.com/news/index/2009/12/23/MTI2MTEz/Egypt_to_build_biggest_car_tyre_factory_in_MEA.html)

Posted in: Business news