China’s Zenith Group to invest $300 mln in Egypt tyre materials plant

Egypt signed an agreement with China’s Zenith Group Co., LTD on Wednesday to invest $300 million in an automotive tyre materials plant in the Suez Canal Economic Zone (SCZONE), the Cabinet said.

The factory, to be developed in the TEDA Egypt Industrial Zone in Ain Sokhna, will produce steel cord and bead wire used in tyre manufacturing, is expected to create around 1,000 jobs and export part of its output to overseas markets, according to a government statement.

The project will cover about 320,000 square metres and produce 120,000 tonnes of steel cord and 50,000 tonnes of bead wire annually.

Zenith Group is part of China’s Zhongtian Group (ZTT Group), an advanced manufacturing and engineering company.

Prime Minister Moustafa Madbouly, who witnessed the signing, said the investment aligns with Egypt’s strategy to expand industrial production and attract foreign investment into higher-value manufacturing.

SCZONE Chairman Waleid Gamal El-Dien said the project would support industrial integration with existing tyre manufacturing facilities in the economic zone, helping develop a broader domestic supply chain.

“The project will integrate with existing tyre manufacturing plants in the Suez Canal Economic Zone, creating a more complete domestic supply chain from intermediate raw materials to finished products,” the Cabinet statement read.

“It will also strengthen supply chains for Egypt’s automotive and rubber industries while supporting local production of advanced tyre reinforcement materials.”

Attribution: Amwal Al Ghad English