The signing, held at the government headquarters in the New Administrative Capital, was also attended by Industry and Transport Minister Kamel Al-Wazir and Walid Gamal El Din, chairman of the Suez Canal Economic Zone (SCZONE).
The agreement was signed by Sailun Group chairman Shi
Shaohong and Cao Hui, CEO of TEDA Egypt.
The $1 billion (50 billion Egyptian pounds) factory,
described as a "world-class facility," will be built in three phases
on a 350,000-square-meter plot within the Sokhna integrated area of the SCZONE.
The first phase is scheduled for completion in 2026 and will
have an annual production capacity of three million passenger car tires and
600,000 truck and bus tires. Once all phases are finished, the project's total
annual production capacity is expected to exceed 10 million tires. The factory
aims to meet local market needs and boost exports.
Madbouly said Egypt was pushing ahead with its
"ambitious strategy to localize the automotive industry and its related
supply chains." He praised the SCZONE's efforts to attract investments in
the key sector, which the state is keen to "deepen local manufacturing
in."
The Prime Minister called for continued cooperation between
the public and private sectors to achieve regional leadership in the automotive
industry in record time. He also highlighted the state's role in national
projects for roads, tunnels, and port development, which he said enhanced the
SCZONE's readiness to attract foreign direct investment and link manufacturing
and logistics to global markets.
Walid Gamal El Din said the tire manufacturing project was a
"cornerstone of the automotive industry localization strategy" within
the SCZONE's vision. He noted the authority was working to create
"integrated industrial clusters" to localize the automotive industry
and its value chains, in line with the national strategy.
He added that a recent promotional tour to China included
visits to major electric vehicle manufacturers and meetings with six major auto
parts companies to identify modern automotive technology and understand
investment needs.
Sailun Group, a major Chinese tire manufacturer, has
factories in China and Vietnam. The company has a total annual production
capacity of more than 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.
It has a sales and logistics network in more than 180 countries and regions. The new factory in the SCZONE is expected to serve as a central regional manufacturing base for local and neighboring markets.