Tire Material Leader Lianke Technology Invests 1 Billion Yuan in Egypt

September 14 evening, Lianke Technology (001207) issued two announcements consecutively: The company plans to invest approximately 1 billion yuan in Egypt's Suez Canal Economic Zone to build the "Silica-Carbon Black Circular Economy Integrated Project"; it will also redirect the approximately 236 million yuan of unused funds from the original fundraising project to this new overseas project, outlining a strategic picture of accelerating globalization and moving towards high-end from both domestic and foreign perspectives.

Follow Tire Customers, Seize the North African Opportunity

According to the announcement, Lianke Technology will establish a platform company through its wholly-owned subsidiary in Singapore, and then jointly invest to register the project implementation entity in Egypt. The new base is located in Suhna Industrial Zone, and after completion, it will form a capacity of 100,000 tons/year of silica and 100,000 tons/year of carbon black, with a construction cycle of approximately 18 months.

This move is timely. China's tire leaders are accelerating layout in North Africa: Sailun Tire invests over 1.1 billion USD in Egypt, Linglong Group plans to invest about 2 billion USD, Zhongce Rubber, Langma, Fengshen successively invest in Egypt, Guizhou Tire, Senqilin etc. layout in Morocco, upstream Zhongtian Steel also builds steel cord project locally. Lianke Technology's products have long been certified by Linglong, Sailun, Goodyear, Triangle, etc. - customers' capacity expansion will directly translate into strong supporting demand. Setting up factories locally not only shortens delivery cycles and reduces logistics and tariff costs, but also leverages Egypt's advantage of being adjacent to Europe and having a free trade agreement with the EU to cover Eurasian and African markets.

After full production, the project is expected to have annual revenue exceeding 1.272 billion yuan, net profit exceeding 188 million yuan, and internal rate of return of 22%. In the first half of 2026, the company's overseas income increased by 45.03% year-on-year, providing ample order reserves for project production.

Fundraising Change, Aiming Higher

The original fundraising project "Nano Carbon Material Project (Phase II)" is progressing smoothly, Line 7 was already put into production in May 2026. This time only the 236 million yuan not yet invested is changed, which still needs shareholder meeting deliberation. The primary reason for the change is the upgrade of the technology route to a higher level: the downstream offshore cable industry continues to raise performance requirements for shielding materials. The higher-end route requires more comprehensive technical verification and process debugging, making the original timeline difficult to match. The company will direct the temporarily unused funds to the Egypt project with a shorter payback period and more clear benefits, avoiding capital sinking.

The Egypt project will form a "Domestic + Overseas" dual-drive model with the Shandong base, meeting overseas customer localization supply needs while diversifying single-region risks. With the continuous improvement of green tire penetration rate, Lianke Technology shifts from single product export to localized production supply. Egypt is expected to become an important manufacturing base for Chinese-funded tire upstream and downstream collaborative support, facing European and African markets. This "Downstream Factory, Upstream Support" cluster export path is worth watching.