Egypt Signs USD 2 Billion Chinese Automotive Manufacturing Deals

Two agreements have been signed with Chinese companies to expand automotive manufacturing in Egypt, covering a major tyre complex and a new platform for planning and building automotive and transport factories.

The first memorandum of understanding, signed with Chinese tyre manufacturer Linglong, provides for an integrated industrial complex producing tyres for passenger cars, buses and equipment, as well as conveyor belts.

Industry Minister Khaled Hashem said the project is expected to attract around USD 2 billion in investment and create more than 5,000 jobs. The complex will also include supporting industries and production inputs such as carbon black and steel wire, with output aimed at both the Egyptian market and export markets in Europe and the United States.

The second agreement was signed by the Ministry of Industry, the Sovereign Fund of Egypt and Chinese smart-equipment manufacturer Jiangsu Changzhou, in cooperation with Italy-based FIDIA Automotive Engineering Systems.

It will establish a platform for planning and building automotive and transport manufacturing plants, covering factory engineering, smart production equipment, technical services, training, technology transfer and project implementation in Egypt and regional markets.

The agreements follow President Xi’s September visit to Cairo, during which plans were also announced to expand industrial cooperation and launch the third phase of the China–Egypt industrial zone in the Suez Canal Economic Zone.

A separate preliminary agreement was also reached with China’s ZC Rubber Group to study a tyre-manufacturing complex worth around USD 500 million.

Government figures cited in the coverage put cumulative Chinese investment in Egypt at more than USD 10 billion, while the China–Egypt TEDA Suez Economic and Trade Cooperation Zone in Ain Sokhna hosts more than 200 companies and has attracted over USD 4.7 billion in investment.