Investment Announcement
On September 23, Linglong Tire (601966.SH) announced that the company plans to establish a wholly owned subsidiary in Egypt as the project implementation entity to invest in and build an overseas tire production base. The total project investment is USD 270 million.
Project Location and Construction Plan
The investment destination is Borg Al Arab, Alexandria, Egypt. The planned total land area is 251,460 square meters (approximately 377.2 mu). The construction period is 2 years. The project construction content includes civil engineering, equipment procurement and installation, and road and greening engineering construction.
Production Capacity and Financial Forecast
After the project is completed, it will be able to produce 6 million semi-steel radial tires annually. It is expected to achieve annual operating revenue of USD 173.3384 million and annual net profit of USD 34.6246 million.
Strategic Significance
Relying on the release of new capacity from the Egypt base, the company will accelerate its deep advancement toward intelligent production, high-end product research and development, green manufacturing transformation, and manufacturing servitization upgrading. It will further enhance its global operations capability, continuously expand overseas market space, more precisely align with downstream customer needs, and provide strong support for the steady growth of the company’s product production and sales volume.