Jakarta,     - The chairman of the Indonesian Tire  Companies Association (APBI), A Aziz Pane, estimated that the value of Indonesia's tire exports to Egypt would reach US$100 million in 2010.

     "Our tire exports would reach nearly US$100 million in 2010," he said after a breakfast meeting with an Egyptian delegation at the industry ministry here on Thursday. 

     Aziz Pane said the value of Indonesia's exports to Egypt currently stood at US$70 million - US$80 million.

     "Now it's almost close to US$100 million. When dumping  allegations were made against Indonesia in 2008, the value was still about US$70 million," he said.

     Pane also expressed optimism that the country's tire exports to Egypt would continue to increase despite Egypt's plan to build the  largest tire factory in the Middle East as reported by the Indonesian trade attache in Egypt.

     The Egyptian News Agency, Mena recently reported that in January 2010 the Egyptian government would establish the largest tire factory in the Middle East worth US$109 million.

     The factory which would be set up in El-Amerya, western    Alexandria within two years, is expected to produce 1.5 million tires per year.

     Pane said he did not believe the planned Egyptian tire plant would threaten Indonesia's share in the tire market there.

     "We are not afraid because the Egyptian plant will only costly US$109 million to build," he said.

     Currently, Indonesian has 13 national tire manufacturers with a combined production capacity of 45 million car and 30 million motorcycle tires per year.

     Some 70 percent of Indonesia's tire production is exported, namely to the United States, Japan, Australia, and some countries in Asia and Europe.

     Data issued by the Industry Ministry showed that Indonesian tire exports had continued to increase in the past few years. In 2006 they reached value of 764.5 million US dollars, in 2007 885.3 million US dollars, and in 2008 1.053 billion US dollars.

-Antara, 15 January 2010-