China Eximbank provides a loan for the Advanced Tyre Factory Project

Project narrative

During the Belt and Road Forum for International Cooperation, on May 16, 2017, the Export-Import Bank of China signed a loan agreement with Advanced Tire Factory Company — a special purpose vehicle — for the Advanced Tyre Factory Project. The proceeds of this loan were to be used by the borrower to finance a $178 million USD contract with China CAMC Engineering Co., Ltd. (CAMCE) signed in April 2016 for the Advanced Tyre Factory Project. The project, located in the Yanbu Royal Commission Industrial Park, sought to build a pneumatic rubber tire manufacturing facility capable of producing 1,800,000 pcs per year of semi-steel radical passenger car and light truck tires. This was the fire manufacturing plant project in Saudi Arabia and was viewed as part of the Saudi Vision 2030 economic reform program of the Government of Saudi Arabia. The project was to be constructed to Chinese standards and invested and operated by CAMC. The expected construction period was 33.5 months. However, it appears this project never entered implementation and may have been cancelled. In March 2023, the European Rubber Journal described a tire manufacturing facility project has having "several near-launches". In January 2022, Saudi company Black Arrow Tire Co. (Blatco) signed a memorandum of understanding (MoU) with Kumho Tire to form a joint venture for the construction of a €1.4 billion EUR tire factory in Yanbu, with construction expected to begin by the second quarter of 2024. This new project was described as the first tire factory in Saudi Arabia, a title that was to go to the Advanced Tyre Factory Project. Originally, in May 2012, Al-Muwakaba for Industrial Development & Oversees Commerce (Holding) (part of Al-Amoudi Group of Companies) awarded a $240 million USD (SAR 900 million) contract to CAMCE to build a tubeless pneumatic tire production plant with an annual output of 1.8 million tires in Yanbu. The project was planned to be completed in 34 months and to begin commercial operations in 2015. Al-Muwakaba for Industrial Development & Oversees Commerce (Holding) had a 65% stake in the Advanced Tire Factory Project, while the Bin Jarallah Group had a 35% equity stake. Funding was to come from the Saudi Industrial and Investment Fund and Saudi banks. CAMCE and its affiliate China National Machinery Industry Corporation (SINOMACH) had the contract to design, engineer, and supply the facility, while BCT was to provide plant technology and Technical Tire Consulting GmbH was to supervise construction.