China's Sailun Group signed an agreement to build a $1 billion tire manufacturing plant in Egypt's Suez Canal Economic Zone (SCZONE), as part of Cairo's push to localise its automotive industry, the Egyptian Cabinet announced on Tuesday. The facility, to be developed in three phases over 350,000 square metres in the Sokhna Integrated Zone, will produce more than 10 million tires annually once fully operational, serving both domestic and export markets. The first phase, scheduled for completion in 2026, will have capacity for 3 million passenger car tires and 600,000 truck and bus tires per year, the statement said. Prime Minister Moustafa Madbouly said the project aligns with Egypt's strategy to deepen local automotive manufacturing and related supply chains. He highlighted infrastructure upgrades, including roads, tunnels and ports, as key to attracting foreign direct investment to the SCZONE. SCZONE Chairman Waleid Gamal El-Dien said the project was among the core initiatives to create integrated industrial clusters for the automotive sector. The deal follows his recent promotional tour to China targeting carmakers, electric vehicle producers and auto parts manufacturers. Sailun, which operates plants in China and Vietnam, has an annual global production capacity of 26.6 million truck and bus radial tires, 88 million passenger car radial tires and 310,000 tons of off-the-road tires. Its sales network spans more than 180 countries. Attribution: Amwal Al Ghad English Subediting: Y.Yasser
