- September 10, 2025
- Posted by: Ahmed Abed
- Category: EN
Mr. Waleid Gamal El-Dien, Chairman of the General Authority for the Suez Canal Economic Zone (SCZONE), witnessed this morning the groundbreaking ceremony of the Chinese “Sailun Group” tire manufacturing plant. The factory will produce a wide range of automotive tires within the “TEDA-Egypt” industrial developer’s area at SCZONE’s Sokhna integrated industrial zone.
The event was attended by Major General Tarek Hamed El-Shazly, Governor of Suez; Major General Engineer Mokhtar Abdel Latif, Chairman of the Arab Organization for Industrialization; Mr. Zhao Liuqing, Minister-Counselor at the Chinese Embassy in Egypt; Mr. Shi Shaohong, President of Sailun Group; as well as senior officials from SCZONE, the industrial developer, and representatives of the Chinese side.
The project is set to cover an area of 350,000 square meters, making it one of the largest Chinese industrial investments in Egypt, with total investments of USD 1 billion (equivalent to approximately EGP 48 billion). It will be implemented in three phases over three years. The first phase will have an annual production capacity of 3 million passenger car tires and 600,000 truck and bus, providing 1500 jobs, and is scheduled to commence operations in 2026. Once fully operational, the factory’s overall annual capacity is expected to exceed 10 million tires, catering to local market needs while unlocking vast export opportunities to regional and international markets.
“This mega project constitutes a cornerstone in SCZONE’s strategy to localize the automotive industry and its related value chains, in alignment with Egypt’s national strategy for automotive industry localization. It reflects our commitment to establishing integrated industrial clusters that will position SCZONE as a leading regional platform in this vital sector,” Mr. Waleid Gamal El-Dien, Chairman of SCZONE, declared.
“The Sailun factory embodies the ramifications of these efforts and highlights the growing confidence of global investors in SCZONE’s investment climate, supported by its strategic geographical location, attractive incentives, and fully integrated infrastructure connected with seaports. With this project, SCZONE reaffirms its commitment to providing all necessary facilitation and support to ensure timely implementation. The factory will not only boost value-added production and create hundreds of direct and indirect job opportunities but will also represent a qualitative leap in enhancing Egypt’s competitiveness within global automotive supply chains,” Mr. Waleid Gamal El-Dien, Chairman of SCZONE, added.
It is worth noting that Sailun Group is one of the largest Chinese industrial corporations specializing in tire manufacturing. The group operates factories in China and Vietnam with massive annual production capacities, exceeding 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. Moreover, Sailun boasts a comprehensive sales and logistics network covering more than 180 countries and regions worldwide. The establishment of its new factory in SCZONE will serve as a central manufacturing base to meet the rising demand in the local market and across regional markets.
