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China’s Sailun Group broke ground on its $1 billion tire manufacturing facility in Egypt’s Suez Canal Economic Zone (SCZONE), marking one of the largest Chinese industrial investments in the country.
The plant, located in the TEDA-Egypt industrial area within SCZONE’s Sokhna zone, will span 350,000 square metres and be developed in three phases over three years, SCZONE said in a press statement.
Phase one is expected to begin operations in 2026, with an annual output of 3 million passenger car tires and 600,000 truck and bus tires.
Once fully operational, the factory will produce over 10 million tires annually, targeting both domestic and export markets.
“This project is a cornerstone in our strategy to localize the automotive industry and its value chains,” said Waleid Gamal El-Dien, Chairman of SCZONE, adding that the project highlights the growing confidence of global investors in SCZONE’s strategic geographical location, incentives, and fully integrated infrastructure connected with seaports.
Sailun Group operates major production facilities in China and Vietnam, with annual capacities exceeding 26.6 million truck and bus radial tires, 88 million passenger car radial tires, and 310,000 tonnes of off-the-road tires. Its global network spans over 180 countries.
Apart from Waleid Gamal El-Dien, the groundbreaking ceremony was attended Tarek Hamed El-Shazly, Governor of Suez; Mokhtar Abdel Latif, Chairman of the Arab Organisation for Industrialisation; Zhao Liuqing, Minister-Counselor at the Chinese Embassy in Egypt; Shi Shaohong, President of Sailun Group.
(Writing by Eman Hamed; Editing by Anoop Menon)
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