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View all search resultsRI tires to remain strong in Egypt, business group says
Indonesian tire exporters remain confident about Egypt’s market despite plans to revitalize an idle plant there and make it the biggest Middle East tire maker, saying their market share in the country would at least remain at about 30 percent
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ndonesian tire exporters remain confident about Egypt’s market despite plans to revitalize an idle plant there and make it the biggest Middle East tire maker, saying their market share in the country would at least remain at about 30 percent.
Indonesian Tire Association (APBI) chairman Aziz Pane said Thursday he had heard of this plan from the Indonesian trade attaché in Egypt, who quoted news from the MENA News Agency.
“I’ve heard that the Egypt company plans to invest US$109 million. That won’t be sufficient to revamp the entire manufacturing facilities in the idle plant [in order to compete with us],” he said.
He said with the $109 million investment, the plant would only be able to produce 600 tires a day maximum, or about 219,000 tires a year.
“If they want to compete with us, it would require at least around $200 million to $300 million in investment, to produce 1,500 tires a day [or around 547,500 tires a year], with a good quality,” Aziz said.
However, according to a letter sent by the Indonesian Embassy in Egypt, the MENA News Agency reports that the Egypt government plans to build the biggest car tire plant in Middle East through its state transportation and machinery enterprise Transportation and Engineering Company (Trenco), with a total investment of $109 million.
The plant, according to this report, is expected to produce 1.5 million tires per year, and would be built in El-Amerya, west of Alexandria, within the next two years.
Indonesia exported car and truck tires to Egypt worth around $70 million in 2007 and $80 million to $85 million in 2009.
Aziz said Indonesia’s tire exports to Egypt were expected to reach more than $100 million this year.
Indonesian tires controlled about a 30 percent share in the Egypt tire market, ranked third in volume after Chinese and Indian tires, he said.
With a total of 13 tire manufacturers, Indonesia produces 45 million car tires and 30 million motorcycle tires a year.
Around 70 percent of total car tire production is exported to the United States, Japan, Australia and a number of Asian and European countries.
