GB Auto released yesterday an update on the use of proceeds from its EGP 959 mn capital increase, concluded last year. The company said at the time it would use the proceeds to build a motorcycles and three-wheeler factory and a tire manufacturing plant. The first facility will have a capacity of 240k motorcycles and 120k tuktuks, giving the company new capacity to serve a market in which the import of already-assembled motorcycles is presently banned. The factory is set to start operations by 1Q2018, according to a statement to EGX on Wednesday. Management has meanwhile said it is re-evaluating the tires plant and reallocated some of the capital from the project to accumulate passenger car inventory, helping it post record market share gains in 2Q2016 when competitors had no stocks. The company disclosed its market share gains in its 2Q2016 earnings release (pdf), at which time it also said it had deployed “all of its available liquidity to ensure the company had sufficient inventory on hand to meet market demand.”