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Linglong Tire plans $270M Egypt plant with 6 million tire annual capacity
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Linglong Tire (601966.SH) announced on September 23 via 格隆汇 that it plans to invest $270 million (approximately 1.835 billion yuan) to establish a tire manufacturing subsidiary in Egypt. The project, named 'Shandong Linglong Tire Co., Ltd. Overseas (Egypt) Investment and Construction Project', will be located in Borg Al Arab, Alexandria Governorate, Egypt. The facility will cover 251,460 square meters (about 377.2 acres) and have a construction period of two years. It is designed to produce 6 million semi-steel radial tires annually. The company projects annual revenue of $173.34 million (about 1.178 billion yuan) and annual net profit of $34.62 million (about 235.27 million yuan) once operational. Linglong Tire stated the investment is part of its international strategic layout to better serve customers in Europe, the Middle East, and Africa, and to enhance its global competitiveness. The company cited strong and growing demand in the target automotive markets as a solid foundation for the project.
Source report
September 23 — Linglong Tire (601966.SH) announced plans to establish a subsidiary in Egypt to support its international expansion strategy and strengthen its presence in Europe, the Middle East, and Africa.
The company, either directly or through its subsidiaries, will invest in setting up Linglong Tire (Egypt) Co. (name subject to final approval by local government authorities). The entity will serve as the implementation主体 for the company's overseas (Egypt) investment and construction project.
Key Investment Details
- Total estimated investment: $270.00 million (approximately RMB 1,834.5963 million)
- Location: Borg Al Arab, Alexandria, Egypt
- Planned land area: 251,460 m² (approximately 377.2 mu)
- Construction period: 2 years
- Scope of construction: Civil engineering, equipment procurement and installation, road and landscaping works
Production and Financial Projections
Once operational, the facility is expected to:
- Produce 6 million units of semi-steel radial tires annually
- Generate annual operating revenue of $173.3384 million (approximately RMB 1,177.80 million)
- Achieve annual net profit of $34.6246 million (approximately RMB 235.2672 million)
Strategic Rationale
The project is based in Egypt and will serve core markets including Europe, the Middle East, and Africa, aiming to precisely meet customer demand. The target region's automotive industry is on a steady upward trajectory, with sustained strong market demand and significant growth potential, providing a solid foundation for the project's implementation.
Source
格隆汇Regional