FILE - Minister Hesham Tawfik
CAIRO – 13 May 2020: Egyptian Minister of Public Business Sector Hisham Tawfik and Chairman of the Arab Organization for Industrialization Abdel Moneim al-Terras witnessed the signing of a memorandum of understanding to establish a company with two affiliated factories for producing various types of car tires, in cooperation between the authority and the Holding Company for Chemical Industries.
Terras said, in a statement on Wednesday, that it was agreed to establish a new company subject to the law of the Arab Organization for Industrialization in partnership between the authority and the Holding Company for Chemical Industries to produce all types of tires for vehicles.
Terras added that two factories will be affiliated to the company, the first in the economic zone of the Suez Canal in Ain Sukhna to produce saloon tires, light transport, bus and car tires; and the second factory in Al-Amiriya in Alexandria to produce tires for agricultural tractors and heavy engineering equipment.
He pointed out that this comes within the framework of implementing the directives of President Abdel Fatah el-Sisi to deepen local industrialization and increase the competitiveness of the Egyptian industry in accordance with international quality standards. These projects will provide many job opportunities for young engineers, technicians as well as training on the latest technologies of the fourth industrial revolution.
Terras emphasized that the latest scientific, chemical and technological solutions are used in establishing the factories, taking advantage of the available capabilities and without placing burdens on the state budget, stressing to meet all local needs as a first stage and then opening new export markets for Arab and African countries.
For his part, Minister of Public Business Sector Hisham Tawfik said that the agreement comes in light of a common vision between the Ministry of Business Sector and the Arab Industrialization Authority to unify efforts and achieve integration in the tire industry and revive and deepen this industry locally according to international quality standards.
He stressed that signing the agreement is a step on the right path to promote such local investments and provide national products to global markets, as part of the ministry's efforts to restructure the Transportation and Engineering Company of the Chemical Holding Company and establish a new factory for it in the Amiriya area of Alexandria to produce tires for agricultural tractors and heavy engineering equipment to meet the needs of the local market. And export abroad.
For her part, Minister of Trade and Industry Nevein Gamea explained that this agreement comes within the framework of the state's strategy to deepen local industrialization, replace imports and increase the added value of the Egyptian product in the local and international markets.
The minister highlighted the importance of exploiting the global crisis of coronavirus outbreak in the manufacture of Egyptian imports locally, especially in light of its diminishing foreign markets and the availability of expertise and capabilities to manufacture it in Egypt.
She noted the possibility of expanding the scope of cooperation between the Ministry of Trade and Industry, the Ministry of Public Business Sector, the Arab Organization for Industrialization and the Economic Zone of the Suez Canal to develop the Egyptian industrial base to cover all the local needs of consumer goods and production inputs.