.jpeg)
Linglong Group has signed an MoU with Egypt’s Ministry of Industry for a proposed integrated tyre and automotive-components complex expected to attract around $2bn of investment, although the project remains at preliminary assessment stage with no final investment decision, construction date or manufacturing capacity yet announced.
Linglong Group has moved its proposed Egyptian manufacturing project into a formal government framework after signing a memorandum of understanding with the country’s Ministry of Industry covering an integrated tyre and automotive-components industrial complex.
The proposed development would combine passenger-car, truck and bus, and equipment tyre production with conveyor belts and upstream industries including carbon black and steel cord. Egyptian officials expect the wider industrial park to attract around US$2bn of investment and create more than 5,000 jobs.
However, the headline investment figure should not be read as a confirmed $2bn capital commitment by Linglong itself. The project remains at preliminary planning and feasibility stage, with key matters including land approval, environmental assessment, financing and partner negotiations still under consideration.
Available information indicates that the approximately $2bn investment figure relates to the proposed integrated industrial park as a whole rather than solely to a Linglong-owned tyre factory.
Implementation is expected to involve wholly owned and equity-participated Linglong subsidiaries alongside strategic partners, with activities spanning tyres, conveyor belts, carbon black, steel cord and other automotive and supporting industries.
No public breakdown has been disclosed showing how much capital would come directly from Linglong, its subsidiaries, outside partners or local participants. Financing structures and any government incentives have also not been detailed.
That distinction is particularly important given the scale attached to the announcement. At this stage, the MoU establishes a framework for developing the project rather than confirming an approved $2bn expenditure programme by Shandong Linglong Tyre or another single group company.
The proposed manufacturing scope includes passenger-car radial tyres, truck and bus tyres and equipment or OTR-type tyres, together with conveyor belts, carbon black and steel cord or wire. No annual production capacity has been published for any of those operations.
The inclusion of carbon black and steel cord means the proposal reaches beyond tyre assembly into important upstream materials. If developed as described, the complex would therefore incorporate a broader tyre-production supply chain rather than relying entirely on imported inputs.
Borg El Arab, southwest of Alexandria, remains the reference location following proposals discussed in April 2026 for a complex covering up to 3 million sq m.
The latest MoU does not, however, appear to constitute final binding site allocation. Linglong says work is continuing on matters including land approval and environmental assessment, meaning the location should still be regarded as proposed rather than definitively secured.
The project is expected to be developed in three phases. Reporting around the agreement indicates these would encompass passenger and truck tyre production together with related industrial, service and logistics facilities.
No phase-by-phase capacity, investment value, construction schedule or commissioning timetable has been announced. The three-stage plan therefore remains an intended implementation structure rather than a confirmed construction programme.
Linglong has also not disclosed a date for final investment approval, construction commencement or first production.
The proposed complex is intended to supply both Egypt and overseas markets.
Earlier plans discussed in April suggested that around 90% of production could ultimately be exported, particularly to the US and Gulf markets. The September MoU did not repeat that percentage, instead referring more broadly to the Egyptian market and export destinations including Europe and the United States.
The distinction leaves the eventual domestic-export balance open while the project is developed.
The September agreement marks a clear progression from the proposal discussed earlier this year. The April plans established Borg El Arab as the proposed location and outlined the potential scale and export orientation of the development. The latest MoU places that concept within a formal framework with Egypt’s Ministry of Industry and more clearly defines the integrated industrial scope.
It nevertheless remains well short of a final investment decision.
The agreement follows shortly after a period of intensified China-Egypt industrial engagement, including agreements reached around President Xi Jinping’s 1–2 September state visit covering manufacturing and wider industrial cooperation.
The Linglong project should not be conflated with the third phase of the China-Egypt industrial zone in the Suez Canal Economic Zone. Borg El Arab remains the reference location for Linglong’s proposal, and no confirmed move to the SCZone has been announced.
Other Chinese tyre-sector projects in Egypt provide some indication of the different stages at which current investments sit.
Sailun has disclosed substantially more detailed production targets for its expanded Egyptian programme, ultimately envisaging approximately 36 million passenger-car tyres and 3.3 million truck and bus tyres annually, alongside 20,000 tonnes of OTR tyres.
ZC Rubber has separately proposed a roughly $500m three-phase tyre development in Sokhna, while Zenith has announced plans for around 120,000 tonnes of steel cord and 50,000 tonnes of bead wire capacity.
Against those projects, the most notable absence from Linglong’s latest announcement is quantified tyre capacity. The proposed investment envelope is substantial, but basic manufacturing metrics and a firm implementation timetable have yet to follow.
For now, the MoU moves Linglong’s Egypt plans forward from a publicly discussed proposal to a formal government framework. The next meaningful milestones will be more concrete: binding site arrangements, financing and partner structures, approved investment, defined production capacity and a construction timetable.
Tags: Linglong Group; Egypt tyre industry; Borg El Arab; tyre manufacturing; carbon black; steel cord; truck tyres; OTR tyres; Chinese tyre investment; Egypt manufacturing
Editorial Standards & Disclaimer
Tyre News Media is an independent industry publication. Our reporting is based on information available at the time of publication, including company announcements, regulatory filings, official data, research and other sources considered reliable.
Articles may include independent analysis and editorial interpretation. Where appropriate, company statements and third-party claims are attributed to their source. Analysis, estimates and forward-looking observations should not be read as statements of established fact.
Tyre News Media takes reasonable steps to ensure accuracy but welcomes corrections, clarifications and responses from organisations or individuals covered in our reporting. If you believe information is inaccurate or requires clarification, please contact info@tyrenews.co.uk. Material errors will be corrected as appropriate.
Commercial relationships, advertising and sponsorship do not determine Tyre News Media's editorial coverage or conclusions.
_0%20(1).png)
%20(1).jpeg)
%20(1).jpg)
.jpg)
