China's Sailun Group to build $1B tire factory in SCZone
Updated 8/13/2025 10:19:00 AM
Arab Finance: Egypt has signed a contract with China’s Sailun Group to establish a tire manufacturing plant in the Suez Canal Economic Zone (SCZone), with total investments of about $1 billion over three phases, as per a statement.
Prime Minister Mostafa Madbouly attended the signing ceremony, alongside Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir, and SCZone Chairman Waleid Gamal El-Dien.
The facility, developed by TEDA Egypt, will be located in the integrated Sokhna area of the SCZone on a 350,000-square-meter site.
The first phase, set for completion in 2026, will produce 3 million passenger car tires and 600,000 truck and bus tires annually.
Once fully operational, annual capacity will exceed 10 million tires, targeting both domestic demand and export markets.
Madbouly said the project aligns with Egypt’s strategy to localize the automotive industry and related manufacturing chains, noting the SCZone’s role in attracting investment through its infrastructure, logistics links, and investment incentives.
He called for continued cooperation between the public and private sectors to achieve regional leadership in automotive manufacturing.
Gamal El-Dien described the project as a key component of the SCZone’s plan to build integrated industrial clusters for the automotive sector.
Sailun Group, one of China’s largest tire and vehicle manufacturing companies, operates factories in China and Vietnam with a combined annual capacity of 26.6 million truck and bus radial tires, 88 million passenger car radial tires, and 310,000 tons of off-the-road tires. Its sales network covers more than 180 countries and regions. The new facility in Egypt will serve as a central manufacturing hub for local and regional markets.
Related News
