The Ministry of Public Business Sector and the Arab Organization for Industrialization (AOI) have signed a memorandum of understanding (MoU) establishing a company specialising in vehicle tyre production.
The MoU, which will see two factories established as part of the company, was signed by Minister of Public Business Sector, Hisham Tawfik, and AOI President Abdel-Moneim El-Terras. It is the culmination of cooperation between the AOI and the Chemical Industries Holding Company (CIHC) at the Ministry of Public Business Sector.
Tawfik said that the first factory will be built in the Suez Canal economic zone at Ain Sokhna. It will be dedicated to producing tyres for regular passenger cars, light transport vehicles, buses and trucks.
The second factory, which will be built in Alexandria, will be dedicated to producing heavy duty tyres for agricultural tractors and heavy engineering equipment. These tyres will be used both in the local market, as well as exported.
Tawfik said the agreement comes in light of the ministry and the AOI’s common vision to unify efforts and integrate the tyre industry. It also aims to improve the overall quality of the local industry locally according to international standards.
He added that that MoU is a step in the right direction for promoting local investments and providing national products to global markets.
The MoU also comes as part of the ministry’s efforts to restructure the Transportation and Engineering Company affiliated to the CIHC.
El-Terras said that the latest scientific, chemical and technological solutions will be used to establish the factories. This will include taking advantage of the available capabilities whilst avoiding financial burdens on the state budget.
He added that as a first phase, all local needs will be met, with new export markets to be opened up in Arab and African countries.
Minister of Trade and Industry, Nevine Gamea, said the agreement is part of the state’s strategy to deepen local industrialisation. It also looks to replace imports and increase the value added of Egyptian products to local and global markets.
She highlighted the importance of unifying all relevant government efforts to advance national industry and create a distinctive brand for Egyptian products in foreign markets.