Egypt: The Chinese Sailun Group will build a tire manufacturing plant in the TEDA Egypt industrial zone in Ain Sokhna, part of the Suez Canal Economic Zone. It will cover an area of 350,000 m², for a total estimated investment of USD 1 billion, and will be deployed over three years.

The Egyptian government announced the signing of a contract with the Chinese Sailun Group for the construction of a tire manufacturing plant. This industrial project, which will be developed in three phases, will be located in the TEDA Egypt industrial zone in Ain Sokhna, part of the Suez Canal Economic Zone.

The plant will cover an area of 350,000 m², for a total estimated investment of USD 1 billion, and will be deployed over three years. The first phase will produce 3 million passenger car tires and 600,000 truck and bus tires, with commissioning scheduled for 2026.

At full capacity, annual production will exceed 10 million tires, with a dual objective: to meet local market demand and support exports. This development could help reduce the continent’s dependence on imports, which come largely from China, Europe, and the United States. According to MarkNtel Advisors, the African tire market was valued at approximately USD 6.35 billion in 2024 and is expected to reach USD 8.34 billion by 2030.

This investment in Egypt complements initiatives aimed at establishing an integrated value chain in the automotive industry, a sector in which the country ranks third in Africa, behind Morocco and South Africa. It comes as the government seeks to increase the share of local content in this sector. Besides the presence of multinationals such as Toyota, Stellantis, Nissan, Hyundai and General Motors, Egypt is also developing its own national vehicle brand, Nasr.