Pirelli signs MoU for truck tyre factory expansion in Egypt

Plans to enlarge Pirelli’s truck tyre radial facility in Egypt are one step closer to realisation following the signing of a Memorandum of Understanding between Pirelli Tyre S.p.A and Egypt’s Ministry of Investment. The freshly-autographed MoU explores the possible expansion of the Alexandria Tire Co. (Atco) plant, an operation that Pirelli holds more than 90 per cent control in. On the basis of the MoU, it is foreseen that Atco would invest around US$107 million to expand and technologically upgrade the plant. The investment is expected to take place over a 36 month period once the conditions (which have not been made public) for the launch of the expansion activities have been met. When completed, the expansion project will create up to 250 new direct jobs at Atco and increase truck tyre radial production by around 300,000 units per annum.

The MoU was signed following the Italian-Egyptian Business Council meeting held in Rome today, in the presence of the President of the Arab Republic of Egypt, His Excellency President Abdel Fattah El-Sisi. The MOU was signed by Minister Ashraf Salman, the Egyptian Minister of Investment, and Mr Alberto Pirelli, vice-president Pirelli & C. S.p.A and head of Region Middle East, Africa and India for Pirelli Tyre S.p.A. Also present were Minister Mounir Fakhry Abdel Nour, the Egyptian Minister of Trade and Industry, and Deputy Minister Carlo Calenda, the Italian Deputy Minister for Economic Development in charge of Foreign Trade.

Since 1999, when it became the major shareholder in Atco, Pirelli has invested about €200 million in Egypt, and at present the operation directly employs more than 1,200 people and produces approximately 850,000 truck tyres a year.

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Enterprise November 27, 2014
[…] Pirelli subsidiary Alexandria Tire Co. (Atco) signed a memorandum of understanding with the Ministry of Investment that paves the way for a USD 107 mn expansion of its Alexandria truck tire plant. The expansion, to take place over a three-year period, would allow Atco to add c. 300,000 tires per year to its present annual capacity of c. 850,000 units — and create some 250 direct jobs at Atco in the process. Pirelli, which owns more than 90% of Atco, has invested some EUR 200 mn in Egypt since 1999; Atco presently employs 1,200 people. (Read the Reuters story on Ahram Online or check out the full press release on Tyrepress) […]
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