Linglong Tire (601966.SH) plans to invest US$270 million to build a project in Egypt

According to Zhitong Finance App News, Linglong Tire (601966.SH) issued an announcement. Based on global industry development trends and the company's international strategic layout, in order to accurately meet customer needs in the global market, enhance the comprehensive strength and international core competitiveness, further expand the European, Middle East and African markets, and achieve maximum corporate efficiency and sustainable development, the company plans to establish Linglong Tire (Egypt) Company in Egypt by itself or its subsidiaries as the implementing entity of the “Shandong Linglong Tire Co., Ltd. Overseas (Egypt) Investment and Construction Project”.

According to estimates, the total investment of the project is US$270 million (RMB 1,835 million). The investment destination is located in Al Arab City, Alexandria Province, Egypt. The total planned land area is 251,460 square meters (about 377.2 acres). The construction period is 2 years. The construction of the project includes the purchase and installation of civil engineering, equipment, and construction of roads and greening projects. After completion, the project can produce 6 million sets of semi-steel radial tires per year, and is expected to achieve annual revenue of 173 million US dollars (1,178 million yuan) and annual net profit of 346.246 million US dollars (235 million yuan off).