On June 18, a major tire manufacturer announced a $1.14 billion plan to expand its production facilities in Egypt. This marks the company’s second expansion project within two months and its third since last August, as it aims to bolster its global presence and mitigate potential trade barriers.
The company will establish a new factory in the Suez Canal Economic Zone, located in Egypt’s Suez province. The facility will have an annual production capacity of 27 million semi-steel radial tires, 1.65 million all-steel radial tires, and 20,000 tons of off-the-road (OTR) tires, according to a statement released yesterday. The construction period is expected to take around two years.
Semi-steel radial tires are mainly used in passenger cars and light commercial vehicles, all-steel radial tires are primarily designed for heavy-duty trucks, and OTR tires are used in construction and mining machinery such as excavators, mining trucks, and loaders.
Once operational, the project is projected to generate an average annual revenue of approximately $11.6 billion and an average net profit of about $1.7 billion. The payback period after taxes is estimated at roughly 5.7 years, with an expected investment return of nearly 15 percent.
The company noted that Egypt serves as a vital global trade center, acting as a key logistics and commercial hub for North Africa and the Middle East, supported by a mature open trade framework. With local manufacturing facilities in operation, the company will have flexibility to adjust production rates in response to fluctuating tire demand and varying tariff policies across different regions.
The company previously announced a $2.91 billion investment to establish a tire factory in Egypt last August. In April, it added a supplementary $2.85 billion investment for the same site to further increase production capacity.
Once all three projects are completed, the total annual manufacturing capacity in Egypt will reach 36 million semi-steel radial tires, 3.3 million all-steel radial tires, and 20,000 tons of OTR tires.
This expansion will enable the company to operate manufacturing facilities in China, Vietnam, Cambodia, Mexico, Indonesia, and Egypt, strengthening its global footprint and reducing risks associated with international trade barriers.