China's Linglong Tire Plans to Build a 6 Million Tire Project in Egypt with 1.835 Billion Yuan

en.Wedoany.com Reported - On September 23, Shandong Linglong Tire Co., Ltd. announced that it plans to invest, either on its own or through its subsidiaries, in the establishment of Linglong Tire (Egypt) Company in Egypt as the implementing entity for the "Shandong Linglong Tire Co., Ltd. Overseas (Egypt) Investment and Construction Project." The total investment of the project is USD 270 million, equivalent to approximately RMB 1.835 billion according to the company's announcement, with a construction period of 2 years and a planned total land area of 251,460 square meters, or approximately 377.2 mu.

After the project is completed, it will form an annual production capacity of 6 million semi-steel radial tires, with products mainly targeting the passenger vehicle and light commercial vehicle markets. According to the company's estimates, after the project reaches full production, it is expected to generate annual operating revenue of approximately USD 173 million, equivalent to approximately RMB 1.178 billion, and annual net profit of approximately USD 34.6246 million, equivalent to approximately RMB 235 million.

This investment is Linglong Tire's first clear tire manufacturing project following the signing of an industrial cooperation framework with the Egyptian side in early September. On September 3, Egypt's industrial authorities and Linglong Group signed a memorandum of understanding, under which the two sides proposed to plan an automotive parts and supporting industries complex in Egypt with a total investment of approximately USD 2 billion, covering passenger vehicle, commercial vehicle, and engineering vehicle tires, conveyor belts, as well as tire raw materials and supporting products such as carbon black and steel cord. At that time, the framework agreement was still an intention-based arrangement.

Linglong Tire subsequently clarified in investor communications that the implementing entity for the USD 2 billion industrial park cooperation is the controlling shareholder Linglong Group, and that specific investments involving the listed company's tire business will be subject to separate decision-making and information disclosure procedures by Linglong Tire in accordance with subsequent project plans. This USD 270 million Egypt tire project has already specified the implementing entity, investment amount, land scale, construction period, and production capacity, and is a physical manufacturing project at the level of the listed company.

Linglong Tire has currently established production layouts in China, Thailand, Serbia, and other locations. Its main products include passenger vehicle and light truck semi-steel radial tires, all-steel radial tires, and off-the-road tires. Its products are sold to more than 170 countries worldwide and supplied to a number of vehicle manufacturers. After the Egypt project is completed, it will add 6 million units of overseas semi-steel tire manufacturing capacity.