Egypt's Prime Minister Mostafa Madbouly on Wednesday witnessed the signing of an agreement between China's Sailun Group and TEDA Egypt to establish a major tire manufacturing plant in the Suez Canal Economic Zone (SCZONE). The ceremony, held at the government headquarters in the New Administrative Capital, was attended by Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, and Walid Gamal El-Din, Chairperson of SCZONE. The contract was signed by Cao Hui, CEO of TEDA Egypt, and Shi Shaohong, Chairperson of Sailun Tire Group. The $1bn (around EGP 50bn) project will be developed in three phases over a 350,000 sqm site within the Sokhna Integrated Zone of SCZONE, managed by TEDA Egypt. Construction is scheduled to be completed within three years. The first phase—set for completion in 2026—will produce 3 million passenger car tires and 600,000 truck and bus tires annually. Once fully operational, the plant's total annual capacity is expected to exceed 10 million tires, serving both domestic demand and export markets. Madbouly said the project reflects Egypt's commitment to localising the automotive industry and its related supply chains, underscoring the role of public-private partnerships in achieving regional leadership within a short timeframe. He highlighted national infrastructure projects—such as roads, tunnels, and ports—that enhance SCZONE's readiness to attract foreign direct investment and connect production hubs to global markets. Gamal El-Din stressed that tire manufacturing is a key pillar of SCZONE's automotive localisation strategy. He noted that the Authority is working to establish fully integrated industrial clusters, in line with Egypt's national automotive manufacturing strategy launched from the Integrated East Port Said Zone. The SCZONE Chairperson also said the project follows a recent promotional tour to China, which included site visits and meetings with leading automotive and component manufacturers—particularly in electric vehicles and batteries. These engagements aimed to exchange knowledge on advanced technologies and assess investment requirements such as energy, utilities, land, and workforce needs. Sailun Group is among China's largest tire manufacturers, producing a wide range of products for different vehicle types. The company operates factories in China and Vietnam, with an annual capacity of over 26.6 million TBR (Truck and Bus Radial) tires, 88 million PCR (Passenger Car Radial) tires, and 310,000 tonnes of OTR (Off-The-Road) tires. Its sales and logistics network spans more than 180 countries. The planned SCZONE facility will serve as a central regional hub, supplying both the Egyptian market and neighbouring markets.
