China’s Sailun breaks ground on $1b tire plant in Egypt’s SCZONE

China’s Sailun Group on Wednesday broke ground on a $1 billion (about 48 billion Egyptian pounds) tire factory in Egypt’s Suez Canal Economic Zone (SCZONE). The project is expected to bolster Egypt’s bid to become a regional hub for auto manufacturing and exports.

The plant, covering 350,000 square metres in the TEDA–Egypt industrial zone in Ain Sokhna, will be built in three phases over three years, the SCZONE said in a statement.

The first phase, due to start operations in 2026, will produce 3 million passenger car tires and 600,000 truck and bus tires annually, creating 1,500 jobs. At full capacity, annual output will exceed 10 million tires, supplying both Egypt’s domestic market and export destinations across the Middle East, Africa and beyond.

“This major project is a cornerstone of Egypt’s automotive localization strategy and reflects growing confidence from global investors in the SCZONE,” said SCZONE Chairman Waleid Gamal El-Dien.

Sailun, one of China’s largest tire manufacturers, operates plants in China and Vietnam with combined capacity of 26.6 million truck and bus radial (TBR) tires, 88 million passenger car radial (PCR) tires, and 310,000 tons of off-the-road (OTR) tires annually. It has a sales and logistics network spanning more than 180 countries.

The investment, among the largest Chinese industrial ventures in Egypt, underscores Cairo’s push to attract foreign capital, strengthen industrial exports, and link local production to global supply chains.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser