Egypt investors propose $1 billion tire plant project

CAIRO, Egypt—Rolling Plus Chemical Industries Co., a new business unit of Egypt's Concrete Plus construction enterprise, has disclosed plans to invest up to $1 billion in a new tire factory in Egypt's Suez Canal Economic Zone.

The investors envision a factory capable of manufacturing up to 7 million tires a year, covering passenger, light truck and heavy truck, according to information provided by Black Donuts Engineering Inc., the Finnish engineering concern that's a partner in the project.

The project's backers foresee a three-phase construction schedule.

Phase One: Construction and commissioning of a factory with annual capacity for 2.5 million passenger tires and representing an investment of $400 million to $450 million. That amount of output would cover half of Egypt's domestic tire demands.

Phase Two: Adding production lines for light commercial vehicles, with an annual capacity of 3.5 million tires, addressing 40 percent of the domestic market.

Phase Three: Adding production lines for about 1 million heavy commercial vehicles.

A timeline for the project was not disclosed. The factory will span 400,000 square feet once finished.

The project's backers signed a contract Sept. 20 establishing a Rolling Plus tire enterprise in a ceremony attended by Egyptian Prime Minister Mostafa Madbouly and Waleid Gamal Al-Dien, chairman of the General Authority for the Suez Canal Economic Zone (SCZONE), where the plant is to be built.

The contract was signed by Abdel Nasser Rifai, managing director of the Main Development Co., and John Baracat, CEO of Rolling Plus Chemical Industries.

It's not known what, if any, financial support the Egyptian government will bring to bear for the project, which would represent the fourth tire-manufacturing enterprise in Egypt.

Thus far Rolling Plus Chemical has divulged no background information about itself. According to Black Donuts, the company in part of Concrete Plus, a Cairo-based construction company whose resume includes dozens of government-funded infrastructure projects. The project's backers did not disclose what brand name they would use for the company's products.

The Suez Canal Zone is a series of properties available for development located adjacent to the Suez Canal and governed by the General Authority for the Suez Canal Economic Zone, an autonomous body with executive/regulative powers.

The new tire plant will be located in the Sokhna Industrial Development zone, an area of 81 square miles near the Port of Sokhna at the southern entrance of the Suez Canal. It's a zone that already has extensive infrastructure in place, including roadways, power, etc., that makes it suited for light, medium and heavy manufacturing activities.

Pirkkla, Finland-based Black Donuts said it will be Rolling Plus Chemicals' engineering, procurement, construction and management partner and will provide employee training at the later stages of the project.

Provided the project comes to fruition, the plant would become the fourth tire factory in Egypt, according to the annual Global Tire Report. The others are:

• Alexandria Tire Co. S.A.E. (a unit of Prometeon Tyre Group) in Alexandria, truck/bus tires only.
• Pyramids Tires, a three-year-old company in Port Said producing light truck, farm, motorcycle and industrial tires.
• TRENCO (Transport & Engineering Co.), a 58-year-old company in Alexandria producing passenger, light truck, medium truck/bus and agricultural tires.