Arab Finance: China-based tire manufacturer Sailun Group has produced the first vehicle tire at its $804 million factory in the Suez Canal Economic Zone (SCZONE), marking the start of trial operations ahead of its planned official opening and full commercial operation in early 2027, as per a statement.

The plant occupies 400,000 square meters within the industrial area managed by Egypt-based industrial developer TEDA Egypt in the Sokhna Integrated Zone. It is expected to create more than 3,000 direct jobs and uses smart manufacturing technology to improve production efficiency and product quality.

Moustafa Shaikhon, Chairman of the General Authority for SCZONE, said the first tire’s production represented a step toward transferring tire manufacturing technology to Egypt and establishing local production capabilities.

He noted that the project supports the national strategy to strengthen supply chains and increase value added across the automotive and vehicle manufacturing sector.

Moreover, Shaikhon explained that SCZONE is working to develop a complete automotive value chain capable of meeting domestic demand and reducing imports of manufacturing supplies and spare parts. The authority also aims to expand Egyptian exports to regional and international markets by drawing on the country’s location and free trade agreements.

The project forms part of SCZONE’s broader efforts to localize strategic industries and support sustainable development. Sheikhoun said attracting investment that brings advanced technology into priority sectors remains central to this work.

He added that the authority is coordinating with investment partners, developing and digitizing its single-window services, providing ready-to-use infrastructure and utilities, and offering suitable investment incentives.

Together, these measures support the establishment of integrated industrial bases, improve the competitiveness of the Egyptian economy, and create employment opportunities for Egyptian youth, Shaikhoun said.