EGYPT INKS $1B DEAL WITH CHINA’S SAILUN GROUP FOR TIRE FACTORY IN SUEZ CANAL ZONE

Egypt partners with Sailun Group to build a $1B tire factory in SCZONE, set to produce 6M tires annually by 2026, boosting local industry.

By Walcott Aganu

Egypt sailun group Suez canal tire factory Automotive investment
Automative tire factory
Automative tire factory
rt automotive tire factory in the Suez Canal Economic Zone (SCZONE), the Egyptian cabinet announced on Wednesday, August 6. The project, a collaboration with the Arab Organization for Industrialization (AOI), aims to produce six million tires annually in its first phase, set for completion by 2026, with plans to scale up to 12 million tires per year, according to sources cited by Asharq Business.  

Located in the Sokhna Industrial Zone, the factory will manufacture tires for passenger cars, light trucks, and heavy vehicles, supporting Egypt’s strategy to localize its automotive industry. Sailun Group will hold a 52% stake, with AOI providing the land and holding 48%, aligning with Egypt’s push to reduce import reliance and boost exports. The project is expected to create 1,000 direct and indirect jobs, enhancing local employment and economic growth.  

Prime Minister Mostafa Madbouly, who attended the signing ceremony, emphasized the SCZONE’s role as a global logistics hub, noting its $8.3 billion in investments across 272 projects since 2022. The initiative aligns with Egypt’s 2022 national strategy to position itself as a gateway for Africa’s emerging vehicle markets. Posts on X hailed the deal as a boost for Egypt’s industrial ambitions, with users praising its potential to strengthen regional supply chains.   

Comments

You must be logged in to comment.