29 November 2018
Egypt's state-owned tire manufacturer Transport and Engineering Company (TRENCO) is seeking international and regional investors to revamp its tire manufacturing operations using the Public-Private Partnership (PPP) model, a top company official said.
TRENCO is part of Chemical Industries Holding Company (CIHC) under the Ministry of Public Business Enterprises and manufactures tires for light and heavy vehicles under the Nisr brand.
Managing director Sharif Abdullah told Thomson Reuters Projects that the investor would partner with TRENCO through a Special Purpose Vehicle (SPV) to set up a new plant in Alexandria on the company's land in Amreya by relocating plant and equipment from the existing plant in Smouha.
"The partner will have a principal role in decisions regarding revamping and selection of new lines and management of SPV for a period of three years from the date of the PPP agreement," said Abdullah.
Earlier this month, the company had invited Expression of Interest to set up the SPV with potential partner expected to possess "a solid knowhow in the tire production business and affiliation with a global player."
Abdullah said the company is targeting revenues of up to 338.5 million Egyptian pounds ($18.90 million) for fiscal year 2018-2019 while cutting losses for the current fiscal to 163.8 million pounds ($9.15 million).
In 2016-2017 fiscal, TRENCO achieved revenues of 105.3 million pounds while losses stood at 169 million pounds.
(1 US Dollar = 17.91 Egyptian Pounds)
(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)
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