Egypt and China have sealed a landmark $1 billion agreement to establish a major tire manufacturing facility in the Suez Canal Economic Zone (SCZONE), a move aimed at boosting Egypt’s automotive industry and strengthening trade links with global markets.
The signing ceremony took place on Wednesday at the government headquarters in Egypt’s New Administrative Capital, with Prime Minister Mostafa Madbouly in attendance. Also present were Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, and Walid Gamal El-Din, Chairperson of SCZONE.
The agreement was inked between Cao Hui, CEO of TEDA Egypt, and Shi Shaohong, Chairperson of Sailun Tire Group, one of China’s largest tire manufacturers. The project, valued at around EGP 50 billion, will be developed over a 350,000 square metre site in the Sokhna Integrated Zone, which is managed by TEDA Egypt. Construction is expected to be completed within three years.
The plan will be rolled out in three phases. The first phase, scheduled for completion in 2026, will have the capacity to produce 3 million passenger car tires and 600,000 truck and bus tires annually. Once all three phases are complete, the plant’s total production capacity is expected to exceed 10 million tires each year, catering to both domestic demand and export markets.
Prime Minister Madbouly described the deal as a significant step towards localising the automotive industry and its supply chains. He emphasised the government’s commitment to developing public-private partnerships that will position Egypt as a regional leader in manufacturing within a short time. Madbouly also pointed to the country’s recent infrastructure developments—roads, tunnels, and modernised ports—that make SCZONE an attractive destination for foreign investors.
Walid Gamal El-Din, SCZONE Chairperson, highlighted that tire manufacturing is a central part of the Authority’s automotive localisation strategy. He explained that SCZONE is working to build integrated industrial clusters, aligned with Egypt’s national automotive manufacturing strategy, which was launched from the Integrated East Port Said Zone.
According to Gamal El-Din, the Sailun project is a direct result of a recent promotional mission to China. The SCZONE delegation held discussions with major automotive and component manufacturers, particularly in the fields of electric vehicles and battery production. These meetings provided opportunities to share expertise in advanced technologies and to assess investment requirements, including energy supply, utilities, land availability, and workforce readiness.
Sailun Tire Group, based in China, is known globally for producing a wide range of tires for different types of vehicles. The company operates large-scale factories in China and Vietnam, with an annual capacity of more than 26.6 million truck and bus radial (TBR) tires, 88 million passenger car radial (PCR) tires, and 310,000 tonnes of off-the-road (OTR) tires. Its distribution network spans more than 180 countries, supplying both original equipment manufacturers and replacement markets.
The new facility in the SCZONE is expected to serve as a central hub for the region, meeting Egypt’s domestic tire needs while also targeting neighbouring markets across Africa, the Middle East, and Europe. By producing locally, Egypt aims to reduce dependence on imported tires, lower production costs for the automotive sector, and create new export opportunities.
Officials say the project will also generate significant employment opportunities, both directly within the factory and indirectly through supply chains, logistics, and related services. It is part of Egypt’s wider strategy to attract foreign direct investment into manufacturing sectors that have strong export potential.
The establishment of the Sailun plant reinforces SCZONE’s position as a key player in regional industrial development. By hosting globally recognized manufacturers, the zone aims to boost technology transfer, promote skill development, and expand the country’s manufacturing capacity in line with its Vision 2030 economic goals.
