JEDDAH: China’s Linglong Group has signed a memorandum of understanding with Egypt’s Ministry of Industry to develop an integrated tire manufacturing complex with planned investments of about $2 billion, creating more than 5,000 jobs and supplying domestic and international markets.  The project will produce tires for passenger cars, buses and equipment, as well as conveyor belts, according to the Egyptian Cabinet. The complex will also include supporting industries and production inputs, including carbon black and steel cords.  The initiative comes as Egypt seeks to develop domestic passenger-car tire production and reduce its reliance on imports. The country imports nearly 8 million tires annually at an estimated cost of $1.25 billion, while domestic production has historically focused mainly on tires for trucks, buses, and two- and three-wheeled vehicles.  The undertaking is intended to deepen local manufacturing and establish an integrated value chain for the tire industry, while supporting technology transfer and the development of local skills.  “The Minister of Industry said the complex will include a number of supporting industries and production inputs, including carbon black and steel cords, contributing to deeper local manufacturing and the development of an integrated value chain,” the Cabinet said.  $2bn tire complex  The MoU was signed by Egypt’s Industry Minister Khaled Hashem and Wang Lin, vice chairman of Linglong Group, in the presence of Prime Minister Mostafa Madbouly. Hashem said the signing was part of efforts to strengthen industrial and investment cooperation between Egypt and China.  He added that the initiative would support technology and knowledge transfer, build local skills and capabilities, and strengthen links between industries involved in tire manufacturing. Production will serve domestic demand as well as European and US markets, increasing local added value, boosting the competitiveness of Egyptian products and expanding their access to global markets.  Hashem said the project is part of the Ministry of Industry’s strategy to expand the localization of complementary and supporting industries, deepen local manufacturing and complete supply chains, particularly in the automotive sector and related industries.  He emphasized that the undertaking is also intended to increase local content, reduce reliance on imports, create opportunities to boost production and exports, and strengthen Egypt’s position as a regional hub for the automotive industry and its components.  Borg El Arab proposal  Egypt and Linglong discussed plans for the project in April, when the Chinese company explored establishing an integrated tire manufacturing complex under Egypt’s private free-zone system, according to the Ministry of Investment and Foreign Trade.  The earlier proposal envisaged a complex covering up to 3 million sq. meters in Borg El Arab, with supporting industries including rubber and carbon black. About 90 percent of production was expected to be directed toward exports, particularly to the US and Gulf markets.   The ministry said the proposal was being explored in cooperation with Egyptian company Nile Trading and Supplies, operating under the Fit & Fix brand.   During the April discussions, Linglong said the project would support technology transfer and help strengthen local industrial capabilities.