Aeolus is changing the ownership structure of its planned Egyptian tyre factory while retaining majority control.
Aeolus Tyre has approved a revised ownership structure for its planned RMB 2.68 billion tyre manufacturing project in Alexandria, Egypt, bringing two Chinese investment funds into the holding company that will oversee the development.
The Chinese tyre manufacturer will establish Aeolus Tyre (Hainan) alongside the China-Africa Development Fund and China-Eurasia Fund, replacing an earlier proposal to create a wholly owned subsidiary before introducing external investors.
The change follows the company's original investment announcement in May 2026 and leaves the overall project budget, proposed production capacity and Aeolus's financial contribution unchanged.
Under the revised arrangement, Aeolus will hold a 56% controlling stake in the Hainan company, contributing RMB 840 million towards its proposed registered capital of RMB 1.5 billion.
The China-Africa Development Fund will subscribe RMB 379.95 million for a 25.33% interest, while the China-Eurasia Fund will contribute RMB 280.05 million for an 18.67% stake.
Aeolus will retain the right to nominate three members of the five-person board, including the chairman. Each investment fund will nominate one director.
The manufacturer said the revised arrangement would simplify the investment structure and improve the efficiency of implementing the transaction. The final investment amounts and shareholding percentages remain subject to signed agreements.
The proposed Hainan company will become the controlling shareholder of Aeolus Tyre Egypt, a joint venture to be established with Prometeon Tyre Egypt and China Rubber International.
The Egyptian manufacturing project carries a proposed total investment of RMB 2.68055 billion, with approximately RMB 1.516 billion to be provided through equity contributions.
Located in Alexandria, the development is intended to expand tyre manufacturing capacity alongside Prometeon's existing production facilities.
The project will use existing factory land and some established utilities, together with neighbouring land acquired for expansion.
According to Aeolus's original announcement, the factory is designed to produce annually:
Construction plans include new radial tyre production workshops, finished-product warehouses, testing facilities, laboratories and supporting infrastructure.
The original development programme estimated a construction period of approximately 20 months, although the actual timetable remains dependent on implementation and regulatory requirements.
Aeolus first approved the proposed overseas investment in May 2026, identifying Egypt as a manufacturing base that would support its international expansion and strengthen cooperation with Prometeon Tyre Group.
The latest announcement represents a change to the project's investment arrangements rather than an increase in manufacturing capacity or overall expenditure.
Aeolus confirmed that the proposed investment continues to require outbound investment approvals or filings in China, together with relevant regulatory procedures in Egypt.
The company also cautioned that construction plans, project scale and implementation schedules may change according to business requirements and external conditions.
The revised structure establishes how the investment partners intend to participate in the project, but does not confirm that construction has commenced.
Primary reporting sources: Aeolus stock-exchange announcement, 12 November 2026 and Aeolus original investment disclosure, 19 May 2026.
The Aeolus project is separate from other Chinese tyre investments planned in Egypt. In September, Linglong approved a US$270 million passenger tyre factory in Borg El Arab, also in the Alexandria region.
Tags: Aeolus Tyre, Egypt tyre factory, tyre manufacturing, Prometeon Tyre, China-Africa Development Fund, China-Eurasia Fund, Alexandria, truck tyres, agricultural tyres, OTR tyres
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